The price of Bitcoin, the largest cryptocurrency by market cap, explodes to the high unseen since 2018. On October 13, Bitcoin’s price rallied over the $14,000 barrier. Based on data from CoinMarketCap, its current price is $13,740.
The recent major world events, like the US election and the pandemic outbreak, play a significant role in pushing Bitcoin’s price spike. Moreover, it has pulled the interest of large institutional players, including Square and MicroStrategy, in the past few months. As reported earlier, Bitcoin has also responded well to the PayPal announcement that users could buy and sell the crypto asset.
However, along with the price rally, Bitcoin transaction fees have also abrupted exponentially. The average transaction gas fee on the Bitcoin network is now $13. On October 17, the average cost of a transaction on the network was reported as $1.5. The nine times increase in the average transaction cost of Bitcoin comes in just a span of two weeks.
Ethereum Transactions Cost More Than Bitcoin Transactions
High transaction fees normally show network congestion, during which users are likely to send more to process their transactions. Bitcoin fees rise when the available miners on the network are unable to manage the transactions that users need to transfer.
During the DeFi Boom, Ethereum transaction cost also reached an all-time high. As a new wave of DeFi rewards incentives kicked off in the crypto sphere, users invested crypto, worth billions of dollars, into Eth-based DeFi platforms to make the most from large yield farming and incentives offering. According to BitInfoCharts, Ethereum transaction fees hit a spike of $14.5.