Transaction fees for the top cryptocurrencies have experienced a significant increase recently, with Dash fees remaining some of the least expensive.
As public interest in digital assets has grown in recent months, the collective market cap for cryptocurrency has risen from $45 billion to $95 billion in the last month alone. With it, transaction fees for some of the top cryptocurrencies have risen accordingly. The seven-day moving average fee for Bitcoin is now $4.04 per transaction, excluding it from viability for most regular purchases. Monero’s fees come in second at $1.72, mostly due to a much higher data load because of its encrypted transactions many times larger than Bitcoin’s
Ethereum joins Bitcoin and Monero in the “high fee club”
While several coins are to be expected to have high fees, an unusual addition to the group is Ethereum. As its market cap grows past half of Bitcoin’s and as its usage increases accordingly, Ethereum’s fees have been on a significant upswing over the last month, growing from a seven-day moving average of about $0.25 to $0.90 at present. While this is still far from those of Bitcoin or Monero, such a fee still precludes Ethereum from efficient use for small transactions such as the proverbial cup of coffee.
Of the top coins, only Dash and Litecoin have retained low fees with no significant increase. Dash’s seven-day moving average for fees is $0.11, while Litecoin is close at $0.14. Unlike the other coins listed here, Dash also has the option to do instantly-confirmed transactions through the InstantSend function, which cost ten times as much as a regular transaction, likely driving the average transaction higher than it would otherwise be.
Long-term scaling solutions remain a hot topic
Now that digital currency is increasingly breaking into mainstream consciousness, the question of scaling to effortlessly handle the user load promised by mainstream adoption remains a hot topic. In the meantime, Bitcoin remains at an impasse in its scaling debate, as even the 2mb + SegWit compromise agreed upon by over 50 companies and over 80% of the network hashrate has been unable to prevent community divisions. This has provoked a rise of “cryptohooliganism,” with cryptocurrency fans using divisive and vitriolic approaches to promote their favorite projects.