Bitcoin and Ethereum Surge to New Yearly Highs Amid Increased Network Fees

Bitcoin and Ethereum Reach New Yearly Highs

Bitcoin and Ethereum have recently reached new yearly highs, marking a significant milestone in the cryptocurrency market. This surge has been accompanied by a remarkable increase in network fees, particularly for Bitcoin, which has surpassed Ethereum's total fees.

Increase in Bitcoin Network Fees

Bitcoin experienced a 60% increase in transaction fees, attributed to a combination of factors. The cryptocurrency's price climbed to a yearly high of $45,000 before stabilizing above $43,000. Additionally, the rise in Bitcoin Inscriptions has driven higher demand for network capacity, leading to increased transaction costs.

Throughout the week, Bitcoin's total fees amounted to $43.8 million, a 61.4% rise. In comparison, Ethereum's total fees increased by 48.3%, amounting to $83.3 million.

Ethereum's Market Performance

Ethereum also reached new yearly highs, with its value climbing to $2,390. In recent trading, Ethereum outperformed Bitcoin in daily gains, rising by 4.58% to $2,360, while Bitcoin increased by 1.26% to $43,937.

Despite this bullish momentum, Ethereum faces challenges. There has been no significant surge in new users, as indicated by a lack of increase in new addresses and adoption rates. However, Ethereum remains the only major layer-1 network where the percentage of supply held by whales has grown. Whales now hold 35% of Ethereum's supply, up from 22% at the start of the year.

Conclusion

The recent activity in Bitcoin and Ethereum highlights their volatile yet promising nature in the crypto market. While both cryptocurrencies have made impressive gains, the underlying dynamics such as network fees and user adoption provide key insights into their future trajectory.