According to data from Messari, Cardano, the third-largest smart contract platform based on market capitalization, has experienced a notable increase in transaction fees.
As of May 28, the transaction fees on the Cardano network reached a new record high of $15.2K, marking the highest level since August 11, 2022. This increase suggests a surge in network activity and demand. Just a month earlier, on May 1, the fees were significantly lower at $8.4K.
However, even with these figures, Cardano still maintains the lowest transaction fees compared to Bitcoin and Ethereum. For instance, Bitcoin, the largest cryptocurrency in terms of market capitalization, recorded transaction fees of $1.76 million in the past 24 hours, highlighting a stark contrast to Cardano’s $15.2K fees.
Ethereum Experiences Higher Transaction Fees Than Cardano
In comparison, Ethereum, which holds the position of the second-largest cryptocurrency and is a prominent smart contract platform, experienced even higher transaction fees, amounting to a total of $9.16 million. These figures indicate that, despite the recent increase in fees on Cardano, it still maintains an advantage in terms of lower transaction costs when compared to Ethereum.
The substantial disparity in transaction fees can be primarily attributed to the underlying technology of the respective platforms. Cardano was specifically developed to accommodate a higher volume of transactions per second (TPS), reducing transaction costs.
According to a report, Cardano witnessed a substantial 91% surge in decentralized exchange (DEX) volume, reaching $68.5 million in the past week. The notable increase can be mainly attributed to heightened activity on DEX platforms built on the Cardano network, with Minswap leading the way by contributing 90.4% of the overall DEX volume.