The post Which crypto protocols bring in the biggest fees and costs per user? appeared on BitcoinEthereumNews.com.

Fees on crypto protocols serve as a proxy to determine a protocol’s activity and gauge the effects of the bull market. DeFi protocols and platforms measure user counts and extraordinary activity days through fees. There is no doubt that Bitcoin and Ethereum make the most fees each day based on the size of their network. Based on mining or rewarding block producers, those chains also have expenses built into them. Ethereum is the leader with more than $5.6M in average daily fees, while Bitcoin produces more value through block rewards.  Read: Three Ways to Avoid Fees Eating into Your Crypto Trading Profits For smaller projects, fees reflect a more complex picture, mapping behaviors like trading, staking, mints, identity features, and other Web3 use cases. Fees in this context reflect a project’s applications beyond simple payments and transactions.  High fees single out the most used blockchains during the 2024 market. Those include Binance Smart Chain, Arbitrum One, Optimism, and Polygon.  The most active DEX and liquidity staking protocols have the highest fees. These include Uniswap, Sushi Swap, Aave, Maker, Kyberswap, Curve, and Trader Joe.  Dogecoin is an honorable mention. It is still active on its main net and used for transfers between wallets, exchanges, or other protocols. The low fees make Dogecoin still attractive to use as a main net asset despite the lack of scaling. Dogecoin also rises without a boost from native DeFi or DEX apps.  Which protocols are the most expensive for users?  Most protocols aim to offer negligible fees and earn from volumes, but some incur higher costs for each user.  Cross-matching daily active users with daily fees gives a diverse picture of fees per user. Ethereum clocks in at above $14 in fees per average user among commonly used networks. On-chain derivative trading is also expensive,…

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Filed under: News - @ June 6, 2024 11:20 am