Bitcoin Challenging Ethereum’s Dominance in Fees Generated with Ordinals and BRC-20 Tokens
Bitcoin is giving Ethereum a run for its money in terms of daily fees generated, challenging Ethereum’s dominance in the blockchain network space. Since 2021, Ethereum has typically led layer 1 blockchain networks in fees generated, but recent data shows that Bitcoin has been leading the pack on several occasions.
According to blockchain analytics firm Artemis, on Monday, crypto users paid $9.8 million in total fees on Bitcoin and $6.4 million on Ethereum. The following day, Bitcoin generated $6 million in fees compared to Ethereum’s $4.8 million. This trend has been consistent, with Bitcoin leading Ethereum in daily fees generated for 27 days since 2021.
The rise in fees on Bitcoin can be attributed to the popularity of Ordinals non-fungible tokens (NFTs) and trading BRC-20 tokens. NFT trading volume on Bitcoin has exceeded that of Ethereum over various time periods, and Bitcoin is now in fourth place for all-time NFT sales volume. Additionally, three of the top 10 NFT collections by market cap belong to the Bitcoin ecosystem.
Furthermore, Bitcoin generates fee income from trading BRC-20 tokens, with decentralized exchanges like Unisat seeing significant trading volume. Looking ahead, the introduction of Runes, a protocol aiming to improve upon BRC-20 tokens, could further boost Bitcoin’s market for fungible tokens.
Despite these developments, the price of BTC has decreased by 3.7% in the past 24 hours to around $60,100. However, experts remain optimistic about the potential for Bitcoin to close the gap with Ethereum in terms of fees generated, especially with the introduction of innovative protocols like Runes.
