The high DeFi activity brings higher Bitcoin Fees as they have increased by 300% in the past two weeks as we are reading more in the reports here in our Bitcoin news today.
The DeFi Activity on ethereum is officially changing the entire crypto industry but it also starts bringing higher fees. Bitcoin is not missing out on the recent price jumps but it joined Ethereum in higher fees. The BTC fees increased again and approached levels seen during the recovery from the March Crash which was also correlated with the stock market decline. The fees hit a new high of $3.841 which is an increase of 151% but they fell shortly yesterday reaching $2.9 according to BitInfoCharts.
The surge could mean that all-time high DeFi activity brings higher transactions for Bitcoin but for other blockchains as well as both Ethereum and DeFi are leading towards the next crypto bull run. Transaction fees are related to the level of activity on the BTC network so once users are buying or selling, the fees go up. The last time that bitcoin saw an increase in fees was back in May when the prices increased from $7900 to $10,000 and it cost more than $6.60 on average to broadcast the transaction.
BTC fees reached their highest level at the end of 2018 once the ICO mania as at its peak and the price reached $20,000. Average BTC fees peaked at a stunning $54 per transaction so the increase in prices and activity can clearly be traced back to DeFi trends. Seeking to increase the funds for the customers to use in loans, most of the protocols are now distributing governance tokens as a reward. ETH is attracting new users and gets an increase in transaction volumes as well. Being first on the scene, Bitcoin acts as a bellwether for the entire crypto sector.
Increasing activity on the network is quite a positive sign for a boost in crypto adoption but as the fees keep on increasing, some of the potential users could be scared off. The need for technological advancement is becoming more urged and the latest ETH 2.0 solution is not too far off.
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