Bitcoin transaction fees plummeted by 98%, and its market value fell below that of Ethereum for the first time. This news was like a bombshell that caused a huge sensation in the cryptocurrency market. Since its birth, Bitcoin has been the leader in the cryptocurrency market. However, the market is now showing unprecedented changes. This article will deeply analyze the reasons for the plunge in Bitcoin transaction fees, explore the reasons behind the first time that its market value fell below that of Ethereum, and look forward to new trends in the cryptocurrency market.

Bitcoin has been the mainstay of the cryptocurrency market since its birth, and its market value has always been at the top. However, recently, Bitcoin transaction fees have plummeted astonishingly, with a drop of up to 98%. This news shocked the entire market and speculated on the reasons behind it. According to analysis, the plunge in Bitcoin transaction fees is mainly due to the effective easing of network congestion and the promotion of Bitcoin network upgrade technology. With the continuous improvement of Bitcoin network technology, the decline in transaction fees is inevitable. This change has also allowed more investors to see the future potential of Bitcoin, and market sentiment has gradually warmed up.

At the same time, the phenomenon that Bitcoin's market value fell below Ethereum for the first time has also attracted widespread attention in the industry. As another major cryptocurrency giant, Ethereum has always been favored for its unique smart contract function and fast transaction speed. The plummeting transaction fees of Bitcoin have caused its market value to be surpassed by Ethereum for the first time, which has caused quite a stir in the market. Analysts believe that this change marks that the cryptocurrency market is ushering in a new pattern, and former followers such as Ethereum may gradually emerge and redefine the market's competitive landscape.

Against this backdrop, the cryptocurrency market is undergoing a profound change. The plummeting transaction fees of Bitcoin and the surpassing of its market value are just a microcosm of this process. In the future, with the continuous development and improvement of blockchain technology, the cryptocurrency market will usher in more changes and innovations. Investors need to remain vigilant, pay attention to market trends at any time, and seize investment opportunities. At the same time, regulators also need to strengthen supervision, regulate market order, and ensure the healthy and stable development of the market.

In general, the news that Bitcoin transaction fees plummeted by 98% and its market value was lower than Ethereum for the first time has shocked the market, but it has also brought new opportunities for the development of the market. Only by constantly adapting to market changes and seizing opportunities can we remain invincible in the fierce competition. The future of the cryptocurrency market is full of infinite possibilities. Let us look forward to and work hard to expand the development space of this emerging field.

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Coin Circle (120BtC.coM): According to data from TheBlock, the transaction fees on the Bitcoin network have risen as the Runes protocol (Runes) launched at the same time as Bitcoin halving has set off a wave of enthusiasm. The 7-day moving average of Bitcoin's average transaction fee exceeds $40, which is about 10 times that of Ethereum's $4.10.

At the same time, Bitcoin's total transaction fee also surpassed Ethereum, and its 7-day moving average climbed to $25.77 million, setting a record high.

Bitcoin's market value/transaction fee ratio was briefly lower than Ethereum

More noteworthy is that the market value/transaction fee ratio of Bitcoin and Ethereum has reversed recently. This ratio is calculated by dividing the market value of blockchain native assets by the annualized total fees paid to the network, which is somewhat similar to observing the price-to-earnings ratio (P/ERatio) of traditional companies. The price-to-earnings ratio is calculated by dividing the company's market value by its net profit after tax.

Earlier this month, the moving average of Bitcoin's market cap/transaction fee ratio was 2,400, while Ethereum's was only 118.33, but by April 25, Bitcoin's ratio had fallen to 220.77, lower than Ethereum's 227.12. This is the first time since July 2019 that Bitcoin's 7-day moving average of market cap/transaction fee ratio has fallen below Ethereum's.

The
Block pointed out that a higher market cap/transaction fee ratio may mean that the asset is overvalued, while a lower price-to-earnings ratio can be seen as the opposite. Although the recent changes do not mean that Bitcoin is undervalued and Ethereum is overvalued, it does reflect the impact of the huge demand brought by the Rune Protocol on the Bitcoin network.

However, the phenomenon of Bitcoin's market cap/transaction fee ratio being lower than Ethereum is quite short-lived, as the recent Rune craze has dissipated, causing Bitcoin transaction fees to begin to slow down.

Rune-related Bitcoin transaction fees have plummeted by more than 98%

Glassnode released data showing that after the halving, rune-related transactions pushed the Bitcoin network to realize a total of $117 million in transaction fee income, of which rune-related transactions generated up to $62.4 million in transaction fee income on the day of the halving.

However, as the rune craze faded, on April 28, rune-related transactions only contributed $1.03 million in transaction fees to the Bitcoin network, a drop of 98.4% from the day of the halving.

According to mempool data, the handling fee of the Bitcoin network has dropped sharply to 19 sats (US$1.53) to 24 sats (US$1.93) per byte, in sharp contrast to the day of the Bitcoin halving on the 20th, when each byte once soared to 1428 sats (US$127.59) to 2232 sats (nearly US$200).

Current Bitcoin network fees

Bitcoin network halving day fees

Guiriba, a cryptocurrency analyst at research firm Paradigma Education, recently pointed out that among the more than 20,000 rune tokens currently on the market, only 77 are relatively successful, accounting for less than 0.4%, and the money-making effect is not obvious, which may be the main reason for the decline of the rune craze.