CryptoSlate recently reported that Ethereum has entered an inflationary state due to the Dencun upgrade, which has reduced the burn rate and reduced gas fees. This development comes as more and more transactions are settled on Ethereum Layer 2.
Before the Bitcoin halving and throughout much of 2024, Ethereum saw higher transaction fees than Bitcoin. However, in the lead up to the halving, on the day of the halving and a few days after, Bitcoin fees surpassed Ethereum fees.
However, as of April 29, fees for both blockchains have been roughly equal, according to data from Glassnode.
Glassnode data shows that on May 12, Ethereum generated $2.8 million in fees above its 7-day moving average, the lowest fees since October 2023, when prices were around $1,800 vs. The current price is just under $3,000.
Although Bitcoin fees are about four times higher than in October 2023, at $2 million compared to about $500,000, we can also observe that since May 2023, each fee boom all lead to higher levels.
