Cardano, the third largest smart contract platform by market capitalization, is seeing significant growth in transaction fees, according to Messari. On May 28, transaction fees on the Cardano network reached an all-time high of $15200, the highest level since August 11, 2022, indicating an increase in network activity and demand. On May 1, fees were at a much lower level – $8400.
Despite these numbers, compared to the transaction fees of Bitcoin and Ethereum, Cardano still claims the lowest transaction fees. Bitcoin, the largest cryptocurrency by market capitalization, has recorded a transaction fee of $1.76 mln in the last 24 hours, in stark contrast to Cardano’s $15200.
Ethereum, the second largest cryptocurrency and leading smart contract platform, recorded an even higher transaction fee of $9.16 mln. These numbers suggest that, despite the increase in Cardano fees, it still retains the advantage of lower transaction costs. The main reason for the significant difference in transaction fees has to do with the technology behind these platforms. Cardano was designed to process a higher volume of transactions per second (TPS), further reducing the cost of a transaction.
Image: Binance Academy
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