These Are The Crypto Transaction Fees That Increased The Most | Benzinga
Cryptocurrencies are having a hell of a ride these days, with Bitcoin (CRYPTO: BTC) dipping again after the Federal Reserve is set to raise interest rates in March. And besides the —sometimes— mind-bending fluctuations of these digital assets, transactions have also soared to eyebrow-raising levels.
According to a study by Forex Suggest, these are the cryptocurrencies whose transfer fees have increased the most. But first, an appetizer: The average increase between December 2021 and January 22 among the top 15 cryptocurrencies was 535%.
“These average fees can fluctuate considerably from month to month and even day to day. Whenever there is increased traffic on the particular cryptocurrency’s blockchain, then the fees will be higher, and vice versa,” the study explains.
Dogecoin (CRYPTO: DOGE) 4,230%
In 2021, Dogecoin was the cryptocurrency with the biggest transaction fee increase as it rose by 4.150%. Since January, the Elon Musk-backed asset’s fee has soared 4,230% marking an eventful year.
A meme token, Dogecoin gained 3,500% for the year in terms of value but has plunged by 81% as “Investors who bought the tokens early made enormous gains, but investors who joined the party later are sitting on painful losses,” according to The Motley Fool.
Elon Musk has butted in with a recent tweet urging McDonald’s Corp (NYSE:MCD) to accept Dogecoin, sending its price up by 9% —at present, it is the 10th largest crypto asset.
XRP (CRYPTO: XRP): 3,810%
“Ripple has experienced the second-largest increase in transaction fees, with the cost of making a payment rising by 3,810%,” Forex Suggest’s report states. However, Ripple has held on to lower transaction costs better than other crypto assets as it took the eighth spot in last month’s ranking with a $0.00649 average.
Ripple has been in the Securities and Exchange Commission’s spotlight for the alleged selling of unregistered securities. The company just repurchased all of its Series C shares valued at $15 billion.
For this year, Ripple remains positive as its CEO Brad Garlinghouse took to Twitter and said: “Today, the network has a volume run rate >$10B.”
Blackcoin (CRYPTO:BLK): 1,886%
Ever since 2022 started, Blackcoin’s transaction fees have grown significantly. Although still the cryptocurrency with the third-lowest fees, it could go through the mill should costs keep jumping as this is precisely what Blackcoin offers in the market.
Blackcoin is one of the first cryptocurrencies to challenge bitcoin’s Proof-of-Work (PoW) philosophy. This substantially changed the concept of other competitors where PoW and mining are strengths of their decentralized architecture.
Ethereum (CRYPTO: ETH): 1,459%
Yes, Ethereum is one of those whose transaction fees grew significantly since December. The asset showed the highest average transaction fee in November, hitting $52.455, caused by extensive network use.
Forex’s analysis is straightforward, though: “Paying over $50 to process a transaction is incredibly expensive, though it remains lower than many international transfer charges for fiat money.”
Further, selling pressure for Ethereum has swollen given increasing inflow to exchanges amid a noticeable price drop. Experts agree that the price of the asset is at a critical moment flirting with the $2,324 foothold.
ZCash (CRYPTO: ZEC): 806%
Transaction fees for ZCash have increased significantly. The “privacy coin” —as it is known given its heavy encryption— has aimed at giving users more privacy and agency, but has seen significant losses in terms of value —up to 32% in a single week.
As 2022 started, ZCash held on to $150 in terms of price, albeit with some minor oscillations around this level. Still, on day five, the asset unexpectedly plunged to $130 to later recover on January 8th and hit $155, only to slip back once again.