In the last seven days, an average of $95,142 worth of value was transferred on the Bitcoin network for every single dollar paid in fees to miners.
Over the last seven days the #Bitcoin Network transferred an average $95,142 of value for every $1 worth of fees.
— Dylan LeClair 🟠 (@DylanLeClair_) November 29, 2021
Transactions on the Bitcoin network
If the median value is taken as a reference it drops to $751. In this case, the average fee as a percentage was 0.13%.
The fact is that the Bitcoin blockchain is now mainly used to record large transactions, as many users use the Lightning Network for small transactions.
In fact, the average value of transactions that are recorded on the Bitcoin blockchain is now almost 3 BTC, or just under $170,000.
In a single day, around 315,000 transactions are recorded, while all others pass through the LN network without being recorded on the blockchain, and with negligible commission costs.
In the last 24 hours, average fees per transaction have been just over $2, while median fees have been just over $0.5.
Comparison with Ethereum
In comparison, Ethereum is much more expensive.
In the last 24 hours, more than 1.2 million transactions were recorded on the Ethereum blockchain, because second-layer solutions such as LN are not yet widely used.
In fact, the average fee per transaction was over $47, while the median fee was over $23, which is almost fifty times higher than Bitcoin’s on-chain transactions, and probably at least 500 times higher than BTC transactions on LN.
Fees make Bitcoin worthwhile
The fact that on average volumes of around $95,000 are transferred on the Bitcoin blockchain for a single dollar fee makes it by far one of the cheapest financial systems in the world to move large amounts of money, as a percentage of the cost is a ridiculous 0.001%. Furthermore, thanks to LN, Bitcoin is now extremely cheap even for small transactions.
In particular, the comparison with Ethereum, which has to handle a much larger volume of transactions, shows that second-layer solutions are the most effective in reducing transaction costs. On the other hand, it is often not particularly useful to register small or very small amounts on a public blockchain.