Bitcoin, Ethereum payment frustrations hit again

Amid the broader market recovery, Ethereum Gas fees have risen again due to increased demand for blockchain. Bitcoin users have suffered a similar fate, with average transaction fees rising to levels not seen since May.

While the latest payment disappointment comes after growing optimism in the market, it also highlights the importance of scalable solutions such as Layer 2s and coils.

Bitcoin, Ethereum payments spiral

Data compiled by Dune Analytics shows that at the end of November 9, Ethereum gas payments briefly touched 270 Gwei, reaching a level not seen since June 2022. This resulted in trading costs of $60 to $100 for a few hours.

The latest spike comes as the biggest altcoin rose to a seven-month high after Blackrock confirmed plans for an Ethereum exchange-traded fund (ETF).

Bull market gas is back pic.twitter.com/qRaEacu7V9

— Nansen 🧭 (@nansen_ai) November 9, 2023

Meanwhile, the average Bitcoin payout rose to $15.86 on the same day. According to Bitinfocharts, the figure was a six-month high. Many users reported to X (formerly Twitter) that it was around $10 for high-priority transactions. While this is relatively low, according to the data, the average Bitcoin transaction price since May has been below $4.

The increased activity of exchange and the execution of financial transactions is further complicated by the increase in common texts. Although space blocking is used as a last resort, these inscriptions add to the expanding backlog and consolidating payment market.

Meanwhile, Bitcoin transaction fees continue to hover at recently established highs, and the price of Ether transfers has dropped to 30 Gwei at the time of writing. However, increasing demand and demand has led to a demand for cheaper alternatives.

Bitcoin layer 2s

Bitcoin Layer 2s are designed to increase the scalability of the Bitcoin network by processing transactions outside of the main blockchain protocols. These are built on top of the base layer to provide additional functionality to Bitcoin by unlocking programmability, privacy or new features.

Lightning Network, Rootstock, Stacks, Liquid Network, and Bundle (both accepted and sovereign) are some of the main Bitcoin layer 2 solutions. But Stax co-creator Munib Ali believes that Bitcoin's layer 2s have a long way to go compared to layer 1s like Solana.

Ali discusses the importance of Bitcoin Layer 2s;

“Today's market reality is that alt L1s (Ethereum, Solana, etc.) are more developed and mature than Bitcoin L2s. They provide better experience and tools for users and developers. It's okay to acknowledge that market reality and work to improve the state of things in the Bitcoin L2 ecosystem.