Bitcoin and Ethereum Fees Rise By Over 50%: Will BTC Conquer $69k?

Dalmas Ngetich

1 year ago

2 mins read

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There is a spike in crypto on-chain activity if transaction fees lead. According to IntoTheBlock data on December 8, Bitcoin transaction fees are up by over 60%, while “gas” in Ethereum has climbed by nearly 50% in the past week.

Bitcoin And Ethereum Transaction Fees Rise By Double-Digits

This surge in activity can be pinned to multiple factors, mainly growing user interest and the ongoing crypto bull market. To illustrate, Bitcoin and Ethereum prices are trending at 2023 highs above $43,500 and $2,300 when writing.

Even so, the crypto community expects these coins to extend gains in the coming weeks and months, partly because of expected institutional capital, projected to be in their billions, flowing to the sphere.

According to IntoTheBlock data, cumulative fees collected in Bitcoin this week stand at $43.8 million, up 61%. On the other hand, $83.3 million in fees has been accrued from Ethereum.

Bitcoin and Ethereum transaction fees rising | Source: IntoTheBlock on X

Looking at the historical transaction fees trend, transacting on Ethereum, despite its relatively high transaction processing speeds (TPS), is more expensive than Bitcoin. This can be due to Ethereum’s role in decentralized finance (DeFi), non-fungible token (NFT) minting, and more. Bitcoin is a transactional layer and doesn’t inherently support smart contracts.

Usually, rising on-chain transaction fees are bullish for price and indicate that their respective ecosystem is thriving from increasing adoption. With transaction fees rising in the two leading blockchain ecosystems, more people want to interact with the project. Subsequently, this could support prices since BTC or ETH is used for paying transaction fees.

Will BTC Ease Past 2021 Highs Of $70,000?

As BTC is currently trading above $43,500 and ETH recently broke above $2,300, the possibility of these coins retesting and easing past their all-time highs of $70,000 and $4,800, respectively, cannot be discounted. One of the key drivers of the surge in on-chain activity is the ongoing bull market.

Bitcoin price trending upward on the daily chart | Source: BTCUSDT on Binance, TradingView

With crypto rising, more people are looking to position themselves, hoping to profit from further price appreciation. This wave of fear of missing out (FOMO) has pushed higher fees and prices.

The demand for liquid and SEC-recognized digital assets will likely increase once the Securities and Exchange Commission (SEC) goes ahead and authorizes the first Bitcoin ETF. This derivative product will allow institutions to invest in Bitcoin confidently through a regulated solution.

As the odds of the SEC approving this product rose from early Q4 2023, BTC and ETH prices started rising in sync. Still, how prices will react once the spot Bitcoin ETF is approved remains to be seen. Once the SEC green-lights a spot Bitcoin ETF, the crypto market will begin looking at Ethereum and whether the agency will approve a similar solution.

Feature image from Canva, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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