Ethereum

World

Bitcoin

Impact

<h2 id="key-points">Key Points</h2><ul><li>The new token standard, Runes, has significantly affected Bitcoin’s transaction fees and market cap to transaction fee ratio.</li><li>Bitcoin’s market cap to transaction fee ratio temporarily fell below Ethereum’s for the first time since July 2019.</li></ul><p>The Runes token standard, introduced during the latest Bitcoin halving, has significantly influenced the Bitcoin network.</p><p>Notably, it has increased the average transaction fee on Bitcoin, even before its official launch. The hype surrounding Runes has also contributed to this surge, providing an additional revenue stream for miners combating lower block subsidy rewards.</p><h2 id="impact-of-runes-on-transaction-fees">Impact of Runes on Transaction Fees</h2><p>The 7-day moving average of the average transaction fee on <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> surpassed $40 last week, a stark contrast to the $4.10 average on <a href="https://crypto.ro/en/cryptocurrencies/ethereum/" rel="noopener noreferrer nofollow">Ethereum</a>.</p><p>In addition, the total fees paid on Bitcoin have exceeded those on Ethereum, with the 7-day moving average of total fees paid on the network escalating to $25.77 million. This figure even peaked at $80 million, marking a new all-time high.</p><h2 id="market-cap-to-transaction-fee-ratio">Market Cap to Transaction Fee Ratio</h2><p>The market cap to transaction fee ratio of Bitcoin and Ethereum is another metric that has recently flipped. This ratio is akin to the price-to-earnings ratio of a traditional company, calculated by dividing a company’s market cap by its net income.</p><p>For the first time since July 2019, the 7-day moving average of Bitcoin’s market cap to transaction fee ratio fell below that of Ethereum. However, this doesn’t imply that Bitcoin is undervalued or Ethereum is overvalued. It is natural for Bitcoin’s ratio to drop when its fees increase.</p><p>This ratio inversion was short-lived, as fees on Bitcoin have started to slow down recently. The ratio inversion and the surge in fees underscore the significant demand that has hit the network following the introduction of the Runes protocol.</p>

Bitcoin Market Cap Slips Under Ethereum’s in Brief Stir of Crypto World

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