Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
Home»ADOPTION NEWS»Rune Reading: Bitcoin’s market capitalization to transaction fee ratio has been lower than Ethereum’s for a while.
ADOPTION NEWS

Rune Reading: Bitcoin’s market capitalization to transaction fee ratio has been lower than Ethereum’s for a while.

By Crypto FlexsMay 1, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Rune Reading: Bitcoin’s market capitalization to transaction fee ratio has been lower than Ethereum’s for a while.
Share
Facebook Twitter LinkedIn Pinterest Email

Rune is taking over the Bitcoin network. This new token standard, launched alongside the latest Bitcoin halving, has been previously mentioned in this newsletter. This is in the context of the hype driving up Bitcoin’s average transaction fees even before its debut and helping miners earn lower block subsidy rewards with transaction fees. Profits reached new highs.

And for the most part, this trend still holds. The seven-day moving average of Bitcoin’s average transaction fee exceeded $40 last week, which is ten times higher than Ethereum’s average transaction fee of $4.10.

And total fees paid on Bitcoin also surpassed Ethereum, with the 7-day moving average of total fees paid on the network rising to $25.77 million (the non-average figure reached $80 million). With or without moving averages, the metric has hit new all-time highs.

One indicator that has recently flipped is the market capitalization to transaction fee ratio of Bitcoin and Ethereum. This metric is the market capitalization of the underlying asset on the blockchain divided by the total annual fee amount paid on the network.

This is the same as looking at a traditional company’s price-to-earnings ratio, which can be calculated by dividing the company’s market capitalization by its net income. The net profit of a blockchain network is the total amount of fees it collects, as it is essentially the cost users pay to interact with the network. Looking at a single P/E ratio doesn’t really mean much. Comparing yourself to your peers is more helpful. A high P/E ratio may mean that the company is overvalued because its market capitalization is higher than the multiple of the earnings it has earned, and similarly, a low P/E may indicate the opposite.

For the first time since July 2019, the 7-day moving average of Bitcoin’s market capitalization to transaction fee ratio is lower than that of Ethereum. At the beginning of the month, the moving average of the Bitcoin rate was 2,400, compared to Ethereum’s rate of 118.33, but on April 25, the Bitcoin rate fell to 220.77, lower than Ethereum’s 227.12.

This does not mean that Bitcoin is currently undervalued and Ethereum is overvalued. According to our calculations, it is natural for Bitcoin rates to fall when fees increase. Even during periods of previously high fees, Bitcoin’s larger market capitalization has maintained a percentage higher than that of the second-largest cryptocurrency. The rate came close to a reversal in December 2023, when Bitcoin experienced a surge in block demand due to the excitement of Ordinals. However, this is still an interesting metric to look at and shows the scale of demand impacting the network in the wake of the Runes protocol.

The rate reversal was short-lived as Bitcoin fees recently began to slow.

This is an excerpt from The Block’s Data & Insights newsletter. Dive into the numbers that make up the most thought-provoking trends in your industry.


Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025

Gala Games improves leader board rewards and introduces preference systems.

June 20, 2025

Ether Leeum Whale starts a $ 11 million leverage betting in the 30% increase in ETH prices.

June 12, 2025
Add A Comment

Comments are closed.

Recent Posts

Checkpoint #4: Berlinterop | Ether Leeum Foundation Blog

June 28, 2025

TRON Price Propects USDT supply exceeded $ 80 billion

June 28, 2025

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025

No Altcoin Season 2025 ? Why Bitcoin Dominance Is Holding Strong In The Crypto Market

June 28, 2025

Why It Matters For Every Crypto Investor

June 27, 2025

Why It Matters For Every Crypto Investor

June 27, 2025

Safe smart account audit summary

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

CARV’s New Roadmap Signals Next Wave Of Web3 AI

June 27, 2025

Bybit Expands Global Reach With Credit Card Crypto Purchases In 25+ Currencies And Cashback Rewards

June 27, 2025

BYDFi Joins Seoul Meta Week 2025, Advancing Web3 Vision And South Korea Strategy

June 27, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Checkpoint #4: Berlinterop | Ether Leeum Foundation Blog

June 28, 2025

TRON Price Propects USDT supply exceeded $ 80 billion

June 28, 2025

Stablecoin startups surpass 2021 venture capital peaks as institutional money spills.

June 28, 2025
Most Popular

Decentralized exchange built on Osmosis hacked with $1,140,000 worth of cryptocurrency in Oracle attack

December 31, 2023

The ETH price outlook is faint as Ethereum DEX volume decreases 34% a week.

March 18, 2025

Da1as – or C-Finance – fake cryptocurrency trading platform

February 11, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.