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LONDON – The cryptocurrency market has seen significant activity, with bitcoin and ethereum both hitting yearly highs, leading to a substantial increase in transaction fees. A recent market rally pushed bitcoin to its yearly peak of $45,000 on Dec. 5, before stabilizing above $43,000. Following this rise, IntoTheBlock reported on December 8 that activity on the bitcoin chain had increased, leading to a more than 60% increase in transaction fees.
Ethereum has also seen remarkable growth, setting new yearly highs on Friday by hitting $2,390. This latest milestone was achieved with daily gains that outpaced bitcoin’s incremental rise. Despite the success of Ethereum’s price and the increase in whale dominance – with these large holders now holding 35% of the total supply – there has been no corresponding increase in new acquisition. users for the network.
The increase in transaction fees for Bitcoin has outpaced that of Ethereum, which saw growth of almost 50%. This fee inflation generally indicates increased demand for processing transactions on each blockchain, which often reflects increased investor interest and market activity.
With both cryptocurrencies showing strong performance, the market is closely following this development. The surge in fees particularly highlights the increasing costs associated with increasing demand for blockchain space during periods of market recovery. Investors and users are now navigating a landscape where increased activity can lead to higher costs for processing transactions on these networks.
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