High Ethereum Transaction Fees Are Fueling Binance Chain Growth

By Ibiam Wayas February 26, 2021 In Binance, Binance Coin, Crypto News, Ethereum

It’s probably no longer news that the transaction count on Ethereum has been growing extensively since the last quarter of 2020. This is also not different from the first quarter of 2021. In fact, more transactions have been settled on the network this quarter alone, when compared to the record in Q4 of last year. 

The increasing number of transactions on Ethereum explains why the network fees have been surging incredibly. 

Messari Forecasts Ethereum Might Settle US$1.6 Trillion in Q1 2021

Ryan Watkins, a researcher at Messari, recently shared data from the crypto-analysis platform, which charted out that the transaction volume of the Ethereum network increases with every proceeding quarter of the year. Already, about US$926 billion transactions have been settled on the network since Q1 2020. In the previous quarter, only US$577 billion was settled on the network and a total of US$2.1 trillion in the whole of 2020. 

One can easily say that Ethereum will surpass last year’s transaction volume quickly, following the record seen so far. More like a prediction, Messari also stated that the transaction volume is on pace to reach $1.6 trillion this quarter. That will be a milestone for the network; however, the growing rate of activities is, unfortunately, forcing many users out of the network due to high transaction fees. 


Ethereum is Becoming More Expensive to use

Since recent months, many Ethereum users have complained of the high transaction fees of the network, which is due to the congestion. This is no longer funny, and the users are left with no other option than to switch to other alternatives. Evidently, the number of transactions on the Binance Smart Chain recently went up as some Ethereum projects and users began joining the network.

On February 24, Binance Smart Chain recorded over 2.6 million transactions, while Ethereum saw as low as 1.28 million transactions. 

Ibiam Wayas

Ibiam Wayas

Ibiam is an optimistic crypto journalist. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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