Since the halving of Bitcoin has ended, the spotlight has slowly shifted towards the rising developments surrounding Ethereum’s space. The anticipation surrounding Ethereum 2.0 is already evident to the community as the number of addresses with 32 ETH continues to grow.
However, in terms of other factors as well, the second-largest digital asset is starting to make a breakthrough.
A recent analysis of Glassnode rings through the potential of the ETH network. According to their recent data, the fees for the Daily Ethereum network surpassed the Bitcoin fee on 6 June. Ethereum surpassed Bitcoin’s network fee of $308,000 at $498,000. In addition, it was added that such an incident occurred for a total of 141 days, out of the time Bitcoin and Ethereum co-exist.
The fact that Ethereum miners are bringing in more fees than Bitcoin miners has shown that the ETH network currently has more activity than BTC. There are, however, certain factors that might have caused this effect.
First, over the last few weeks, a significant amount of Ethereum has been moving in space, and the demand to send Ether between exchanges has increased the rate of volatility.
Higher transaction fees might have been levied for this reason, plus the continued issuance of stablecoins is currently witnessing massive adoption by investors. The issuance of stablecoins on Ethereum requires a fee to be settled in Ethereum.
Ethereum’s Network Improvement and Hash Rate
An increased level of progression has also facilitated changes in on-chain metrics, with Ethereum’s hashrate reaching an all-time high in 2020. According to data, Ethereum hashrate has risen by 26.8 percent since the beginning of January. Improving hashrate is a clear signal of a stronger network and, in addition to increasing transaction fees, it would be safe to say that the relevance of Ethereum in the industry is increasing day by day.
Osho Jha, a blockchain enthusiast also idolized that Ethereum might be looking at a new narrative after the launch of Ethereum 2.0 He believed that the narrative of Ethereum as a Value Store could increase significantly if the services employed by Ethereum were to be taken off.
Too Early to Foresee the Future?
The above argument falls positively in line for Ethereum but the community should not get ahead of itself. Developments surrounding Ethereum 2.0 is still somewhere on a nascent stage in terms of implementation. Only ETH 2.0 testnet has gone live till now but if the reception attained by the testnet is reciprocated in the main launch, Ethereum could be looking at a completely different structure over the next few years.