The cryptocurrency market has experienced significant activity with both Ethereum and Ethereum reaching yearly highs, causing a significant increase in transaction fees. A recent market rally pushed Bitcoin to its yearly high price of $45,000 on December 5 before it stabilized above $43,000. Following this increase, IntoTheBlock reported on December 8 that Bitcoin’s on-chain activity had spiked, leading to a more than 60% increase in transaction fees.
Ethereum has also seen significant growth, setting a new yearly high on Friday by reaching $2,390. This latest milestone comes with daily gains that surpass Bitcoin’s incremental gains. Despite Ethereum’s price success and the rise in whale dominance – with these large holders now owning 35% of the total supply – there has not been a corresponding increase in new user acquisition for network.
The increase in transaction fees for Bitcoin far exceeds that of Ethereum, with a fee increase of nearly 50%. This fee inflation typically indicates increased transaction processing demand on each blockchain, often reflecting increased investor interest and market activity.
As both cryptocurrencies show strong performance, the market is closely watching these developments. The increase in fees specifically highlights the growing costs associated with skyrocketing demand for the blockchain space during market rallies. Investors and users are currently navigating a landscape where increased activity can lead to higher transaction processing costs on these networks.
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