Nick Chong · 1 week ago · 2 min read · Insights via Grayscale Investments
Bitcoin › Analysis
Bitcoin is approaching $1 billion in all-time transaction fees, $15 billion in miner fees
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Bitcoin is nearing $1 billion in total, all-time transaction fees and $15 billion in all-time miner revenue, according to Coin Metrics’ latest State of the Network report.
As of Oct. 13, $996,458,718 in transaction fees have been paid on the Bitcoin network, the report noted. BTC fees now make up significantly less of total miner revenue, which includes block rewards and transaction processing charges.
As of Oct. 13, 2019, Bitcoin’s cumulative fees were 6.6 percent of total miner revenue, which indicates that, since February 2018, they’ve not been increasing as fast as cumulative block rewards.
BTC median transaction fees have declined
The report also mentioned that BTC median fees increased by almost $34 in late 2017, meanwhile, Ether fees peaked at only around $3. However, BTC median fees have declined and have consistently remained less than $4 since February 2018, the report revealed.
According to CoinMetrics:
“This extreme difference in [BTC] median fees is one of the main reasons for the decline in cumulative fees’ share of total miner revenue.”
As of Oct. 13, cumulative fees account for approximately 3.6 percent of Ether’s total miner revenue. When compared to BTC, the ratio has remained relatively flat since early 2018, the report stated.
This may be attributed to the fact that Ether’s fees have increased a lot faster than BTC’s over the same period, the report suggested. It further noted that BTC’s cumulative fees have increased around 74 percent since January 1, 2018. Ether’s have jumped by nearly 400 percent.
Ether’s market cap outperformed Bitcoin’s for the fifth straight week
BTC and ETH’s market capitalization to cumulative miner revenue ratio also flipped in early 2018. As of Oct. 13, Bitcoin’s market cap to cumulative miner revenue (or “thermocap”) ratio is 10.3, while Ether’s is 3.2, the report stated. The S&P price to sales ratio presently stands at about 2.18.
Ether’s market cap outperformed Bitcoin’s for the fifth consecutive week. ETH’s market cap surged 4.6 percent for the week and was up 1 percent last week. Bitcoin’s market cap for the same period increased by 2 percent and posted a 3.1 percent loss the previous week.
For the same period, the hash rate grew more for Bitcoin than Ether. Bitcoin’s hash rate increased 3.5 percent during the last week while Ether’s declined by 0.5 percent, the report mentioned. This marks the second consecutive week that Bitcoin’s hash rate outgrew Ether’s hash rate.
Tether remains dominant stablecoin by “most measures”
CoinMetrics pointed out that the combined total adjusted transfer value of the seven major stablecoins DAI, GUSD, PAX, USDC, TUSD, USDT, and USDT_ETH almost reached all-time highs toward the end of last month, reaching $1,546,234,810 on Sept. 24.
The total has now dropped, averaging around $618,000,000 per day for the first 13 days of this month.
Most of the total stablecoin adjusted transfer value still comes from Tether, the largest stablecoin. Tether activity is shifting from USDT, the original OMNI-based version, to USDT_ETH, the newer, Ethereum-based version.
The majority of major crypto assets saw sharp declines over the past month. Bitcoin is down 20 percent from about $10,000 to $8,000 on Sept. 24.
CoinMetrics’ report pointed out:
“Notice the stair step-like pattern for Bitcoin prices reflecting long periods of muted price volatility interspersed with short periods of large and concentrated price movement. “
Ether remained flat over the time period, however, it still outperformed Bitcoin, which may be due to “an emerging recognition that demand for Ethereum’s block space represented by fees is growing … and momentarily eclipsed Bitcoin’s daily fees,” the report said.
XRP and XLM saw single-digit gains this month, while other large crypto assets are down, but less than BTC.