The value settlement efficiency of the Bitcoin network has steadily improved recently, with more being settled for lower fees.
Over the past week, the Bitcoin network has transferred or settled an average of $ 95,142 of value for every $ 1 in fees.
On-chain settlement efficiency has gradually increased since May as it has moved further around the net during the bull cycle.
On-line analyst Dylan LeClair made the observation using data from analytics provider Glassnode. The value is obtained by dividing the average volume of transactions by the fees.
During the last seven days #Bitcoin Network transferred an average value of $ 95,142 for every $ 1 in fees.
In the medium transaction, $ 751 of value was transferred for every $ 1 of fees.#Bitcoin It is the most efficient money settlement network the world has ever seen. pic.twitter.com/DzSwxCDKkd
- Dylan LeClair (@DylanLeClair_) November 29, 2021
Final settlement costs amounted to just 0.00105% of the total transferred value of $ 451.3 billion.
According to CryptoFees, Bitcoin ranks seventh on the list of networks ordered by daily transaction fees. Its seven-day average is around $ 678,000, which puts it behind Ethereum, Uniswap, Binance Smart Chain, SushiSwap, Aave, and Compound.
The rate tracking platform is currently reporting that Ethereum is currently processing $ 53 million in daily fees, 98.7% more than the Bitcoin network. Bitcoin and Ethereum should not be compared in terms of settlement of value and fees, as they are two different entities: the first is a store of value asset and the second a smart contract and a decentralized application network.
Ethereum's average transaction volume divided by fees is just $ 139 in traded value per dollar in fees.
The settlement efficiency of the Ethereum network has declined as more value has been accumulated on the network and has been placed in much greater demand on it, especially with the rise of DeFi and NFT in the last 18 months.
Related: Bitcoin Network Labels Set Record for Daily Settlement Volume
According to Bitinforcharts, the average transaction fee on the Bitcoin network is around $ 2.13 right now. Comparatively, the average fee for the Ethereum network is a whopping $ 42.58. As Cointelegraph reported yesterday, Bitcoin transaction fees dropped by more than 50% this year.
The divergence in average transaction fees between the two networks can be seen to widen since the end of July.
Ethereum's network fee issues can be circumvented by using layer two networks that have increased in adoption in recent months with a near-historic high total value locked down of $ 6.87 billion according to L2beat.
