Research: Analysis of crypto transaction fees suggests exchanges prefer to move in Bitcoin

2022-12-2 02:55

Crypto exchanges can earn revenue through various means, including lending to margin traders, liquidation fees, and on/off ramping charges. However, the core revenue generator remains taking a fee on transactions.

There are multiple types of transactions and, therefore, many types of transaction fees. When comparing different transaction fees on the Bitcoin and Ethereum chains, the data suggested exchanges prefer to use the former to transfer value internally.

Transaction fees

On-chain data provided by Glassnode and analyzed by CryptoSlate showed an erratic history for fees earned by exchanges on Bitcoin transactions.

The chart below features a considerable spike in fees towards the end of 2017, as BTC hit its $20,000 previous cycle peak.

The 2021 bull market saw another fee spike in April 2021, albeit significantly less than the 2017 bull, as BTC approached $65,000.

Strangely, the most recent bull market top, of $69,000 in Nov. 2021, was not accompanied by another fee spike, suggesting comparatively less exchange activity versus April 2021.

Since April 2021, fees through Bitcoin transactions have sunk significantly and remain truncated.

Source: Glassnode.com Bitcoin: Exchange Fee Dominance

The Exchange Fee Dominance metric is defined as the percentage of total transaction fees paid in relation to on-chain exchange activity. This is further split into the type of transaction that earned the fee as follows:

Deposits: Transactions that include an exchange address as the receiver of funds. Withdrawals: Transactions that include an exchange address as the sender of funds. In-House: Transactions that include addresses of a single exchange as both the sender and receiver of funds. Inter-Exchange: Transactions that include addresses of (distinct) exchanges as both the sender and receiver of funds.

The chart below shows Bitcoin transaction fees made up 36% of all exchange revenue sources related to BTC. This is further split:

Deposits – 21% Withdrawals – 4% In-House – 10% Inter-Exchange – 1%

Over the past five years, the categories of Deposits and In-House have grown exponentially.

Source: Glassnode.com Ethereum: Exchange Fee Dominance

Analysis of Ethereum’s Exchange Fee Dominance paints a very different picture. Currently, Ethereum transaction fees account for 5% of exchange revenue sources related to ETH.

Withdrawals make up the most significant category of transaction fee type, which has been the case since July 2017.

The relative lack of In-House fees compared to Bitcoin suggests exchanges prefer not to use ETH when transferring funds between internal wallets.

Source: Glassnode.com

The post Research: Analysis of crypto transaction fees suggests exchanges prefer to move in Bitcoin appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Emerald Crypto (EMD) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 4.67 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0095806 (-100%)

fees exchanges crypto move research bitcoin transaction

fees exchanges → Результатов: 126


“Unscrupulous” Exchanges Accused of Cashing in on Polkadot Redenomination

Cryptocurrency exchanges have been accused of jumping the gun by redonominating DOT tokens ahead of schedule, confusing traders in the process. In their eagerness to secure more trading fees and attract more users, several leading exchanges have reduced the size of DOT tokens by 100x, 72 hours before they were due to be redenominated. The […]

2020-8-21 21:58


Here Is Why BigONE’s New VIP System Can Make the Most Out of Your Everyday Trading

BigONE Exchange, one of the world’s safest crypto exchanges, has taken on a new sheen as it just launched a brand new VIP system that converts a user’s every engagement with the platform into his or her own benefits, be they discount on spot trading fees, reduction on leverage interests rates, or an increased referral […] The post Here Is Why BigONE’s New VIP System Can Make the Most Out of Your Everyday Trading appeared first on Bitcoin News.

2020-6-22 10:30


Report: Traders move to XRP for cross-exchange transactions increase whenever ETH transaction fees surge

An Xpring report on May 13 stated XRP exchanges see increased inflow/outflow volumes whenever Bitcoin and Ethereum networks are hit by surging transaction fees and congestion. Traders move to XRP during crunch While the sample sizes in terms of days were not specified, Xpring notes XRP cross-exchange transactions went up significantly when Ethereum — widely-used […] The post Report: Traders move to XRP for cross-exchange transactions increase whenever ETH transaction fees surge appeared first on CryptoSlate.

2020-5-13 14:30


AlgoTrader launches advanced crypto order and execution platform WIRESWARM

Banks and other financial institutions are now able to gain easy and cost-effective access to the most liquid and regulated crypto trading venues at the lowest trading fees. Today, AlgoTrader has launched a platform that does just that by allowing banks to gain simple yet secure access to crypto exchanges, market-makers and brokers in order […] CryptoNinjas: AlgoTrader launches advanced crypto order and execution platform WIRESWARM

2020-4-22 11:37


AvaTrade vs eToro Comparison: Fees, Spreads, Pros & Cons

With a looming economic and markets crash, there are a lot of cheap gems that can be bought on exchanges worldwide. Broker platforms like eToro and AvaTrade are a great gateway into the world of trading for small investors who want to wet their feet in the lucrative world of forex, cryptocurrency, indices, ETFs and […]The post AvaTrade vs eToro Comparison: Fees, Spreads, Pros & Cons appeared first on CaptainAltcoin.

2020-3-27 01:27


Coinbase vs Robinhood 2020 – Fees, Security, Features Compared

Ever since Robinhood, a well known financial platform, launched its crypto division, users started wondering how it fares against the top dog of crypto exchanges, Coinbase. To stop the speculation and anecdotal evidence for or against each of the platforms, we decided to do a thorough Coinbase vs Robinhood comparison with all important stuff like […]The post Coinbase vs Robinhood 2020 – Fees, Security, Features Compared appeared first on CaptainAltcoin.

2020-2-17 19:25


Coinmama vs Binance 2020 – Fees, Features, Security Compared

Coinmama and Binance are two exchanges that have different backgrounds and cater different target audiences. Even though Coinmama exists for much longer, Binance has managed to outgrow it by couple of orders of magnitude and sits comfortably at the top of the cryptocurrency exchange food of chain as the platforms with largest trading volume and […]The post Coinmama vs Binance 2020 – Fees, Features, Security Compared appeared first on CaptainAltcoin.

2020-2-13 19:46


Фото:

Switcheo Exchange Review 2020 – Fees, Features, Staking Guide

One of the longstanding problems troubling the cryptocurrency world is the fact that its exchanges aren’t decentralized. While the entire crypto community aims for various degrees of decentralization and “giving the power to the people”, when it comes to platforms that are in charge of connecting the crypto supply and demand the power isn’t exactly […]The post Switcheo Exchange Review 2020 – Fees, Features, Staking Guide appeared first on CaptainAltcoin.

2019-11-19 02:32


CoinSwitch Review 2020 – A Look At Features, Fees, Security

CoinSwitch platform is the first cryptocurrency and altcoin exchange aggregator. It has integrated many leading exchanges across the globe to provide best exchange rates to its users. CoinSwitch is a cryptocurrency exchange providing the best way to invest in cryptocurrencies by aggregating all leading exchanges and comparing cryptocurrency prices in real time.

2019-11-19 02:31


Фото:

Coinbase generated more operating profit from transaction fees than VC money

Coinbase, one of the largest cryptocurrency exchanges in the U. S. , has generated nearly $2 billion from transaction fees alone since its launch in 2012, CEO Brian Armstrong said. In an interview with Vanity Fair, Armstrong said the exchange generated more operating profit than all of the venture capital money it raised throughout the years.

2019-10-25 19:54