Average fee on Bitcoin network reduced by 50%, USD 1 can process up to USD 95,000

Recently, Bitcoin has improved its payment efficiency, meaning that more value can be sent with lower transaction fees.

For the past week, the Bitcoin network has transferred or paid an average of $ 95,142 for every $ 1 in fees.

On-chain processing efficiency has slowly increased since May, when more bitcoins moved through the network during the bull cycle.

The on-chain analyst Dylan LeClair made the observation based on data from the analysis provider Glassnode. The value is calculated by dividing the average transaction volume by the fee.

For the past seven days the #Bitcoin Network remitted an average of $ 95,142 for every $ 1 fee.

The average transaction carried over $ 751 for every $ 1 in fees.#Bitcoin is the most efficient money settlement network the world has ever seen. pic.twitter.com/DzSwxCDKkd

– Dylan LeClair (@DylanLeClair_) November 29, 2021

“For the past seven days, the Bitcoin network has moved an average of $ 95,142 for every $ 1 charge.

For an average transaction, $ 751 is transferred for every $ 1 fee. Bitcoin is the most efficient currency settlement network the world has ever seen. “

The final settlement cost was only 0.00105% of the total transferred value of $ 451.3 billion.

follow Crypto fees, Bitcoin ranks seventh in daily transaction fees. The seven-day average is around $ 668,796, behind Ethereum, Uniswap, Binance Smart Chain, SushiSwap, Aave and Compound.

Glassnode reports that Ethereum is currently processing over $ 54 million in daily fees, 98.7% more than the Bitcoin network. Bitcoin and Ethereum should not be compared in terms of value and fee payments as they are two different entities – Bitcoin as a store of value and Ethereum as a smart contract – dApp network.

Ethereum’s average transaction volume divided by fees is only $ 139 per dollar of fees.

The processing efficiency of the Ethereum network has decreased as more value is accumulated on the network and demand increases, especially with the increase in DeFi and NFT over the past 18 months.

According to Bitinforcharts, the average transaction fee on the Bitcoin network is currently around $ 2.13, while that of the Ethereum network is $ 42.58. Bitcoin transaction fees have dropped more than 50% this year.

From the end of July, the difference in average transaction fees between Bitcoin and Ethereum can be seen more clearly.

Average Bitcoin and Ethereum transaction fees | Source: Bitinfocharts.com

One way to avoid the high fees of the Ethereum network is to use Layer 2 networks, the adoption of which has skyrocketed in recent months as Total Value Locked (TVL) near an all-time high of $ 6.87 billion is.

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