Bitcoin (BTC) network transaction fees are up for the first time since October as activity on the network picks up. Meanwhile, fees on the Ethereum (ETH) network are going in the opposite direction, decreasing ETH token burning accordingly, according to crypto analytics provider CryptoCompare.
Fees paid to transact on the Bitcoin network broke a four-month downward trend in March, rising 18.3% for the month, to a total of $15.2 million, according to the latest report. from CryptoCompare.
He adds that for each transaction, the average fee is $1.91, an increase of $1.84 for the month.
The rise in fees paid in March was accompanied by an increase in network usage. According to the report, March saw 7.98 million transactions processed on the Bitcoin network, the highest monthly number of transactions so far in 2022.
Number of daily transactions on and price:
For its part, Ethereum has seen a drop in both fees and the number of transactions processed on its network.
“Ethereum-related fees continued to decline, this time sharply, by 37.0%, to a total of $424 million,” the report said, noting that fees fell from 21.25 USD in February to 12.13 USD last month.
Lower fees paid to transact on Ethereum also means that less ETH is being burned by a mechanism that removes a portion of the tokens paid for transactions from circulation.
This mechanism, introduced with the EIP-1559 upgrade in August last year, causes the deflationary supply of ETH to occur at times, theoretically increasing the value of every token in circulation.
However, CryptoCompare said the lower fees caused the average number of ETH tokens burned daily to fall by 49.5% for the month, to 3,827 ETH. “The network was therefore inflationary for the whole of March with average daily block rewards at 13.5k ETH,” the report concludes.
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