Bitcoin and Ethereum Fees Rise By Over 50%: Will BTC Conquer $69k?
December 08 2023 - 8:00PM
NEWSBTC
There is a spike in crypto on-chain activity if transaction fees
lead. According to IntoTheBlock data on December 8, Bitcoin
transaction fees are up by over 60%, while “gas” in Ethereum has
climbed by nearly 50% in the past week. Bitcoin And Ethereum
Transaction Fees Rise By Double-Digits This surge in activity can
be pinned to multiple factors, mainly growing user interest and the
ongoing crypto bull market. To illustrate, Bitcoin and Ethereum
prices are trending at 2023 highs above $43,500 and $2,300 when
writing. Even so, the crypto community expects these coins to
extend gains in the coming weeks and months, partly because of
expected institutional capital, projected to be in their billions,
flowing to the sphere. Related Reading: XRP Price To Go Parabolic?
Crypto Analyst Confirms 1000% Golden Cross Has Returned According
to IntoTheBlock data, cumulative fees collected in Bitcoin this
week stand at $43.8 million, up 61%. On the other hand, $83.3
million in fees has been accrued from Ethereum. Looking at
the historical transaction fees trend, transacting on Ethereum,
despite its relatively high transaction processing speeds (TPS), is
more expensive than Bitcoin. This can be due to Ethereum’s role in
decentralized finance (DeFi), non-fungible token (NFT) minting, and
more. Bitcoin is a transactional layer and doesn’t inherently
support smart contracts. Usually, rising on-chain transaction fees
are bullish for price and indicate that their respective ecosystem
is thriving from increasing adoption. With transaction fees rising
in the two leading blockchain ecosystems, more people want to
interact with the project. Subsequently, this could support prices
since BTC or ETH is used for paying transaction fees. Will
BTC Ease Past 2021 Highs Of $70,000? As BTC is currently trading
above $43,500 and ETH recently broke above $2,300, the possibility
of these coins retesting and easing past their all-time highs of
$70,000 and $4,800, respectively, cannot be discounted. One of the
key drivers of the surge in on-chain activity is the ongoing bull
market. With crypto rising, more people are looking to position
themselves, hoping to profit from further price appreciation. This
wave of fear of missing out (FOMO) has pushed higher fees and
prices. The demand for liquid and SEC-recognized digital assets
will likely increase once the Securities and Exchange Commission
(SEC) goes ahead and authorizes the first Bitcoin ETF. This
derivative product will allow institutions to invest in Bitcoin
confidently through a regulated solution. Related Reading:
Binance Founder Ordered To Stay Put In The US In Ongoing Probe As
the odds of the SEC approving this product rose from early Q4 2023,
BTC and ETH prices started rising in sync. Still, how prices will
react once the spot Bitcoin ETF is approved remains to be seen.
Once the SEC green-lights a spot Bitcoin ETF, the crypto market
will begin looking at Ethereum and whether the agency will approve
a similar solution. Feature image from Canva, chart from
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