Ethereum USDT total close to Bitcoin network, Bitcoin miners' income exceeds $15 billion

This article is an observation of cryptocurrency market data. Through the data, we will be able to discover some very important things, such as USDT's continued transfer from the Bitcoin network to the Ethereum network. The two networks are now basically on par, and it is very likely that they will continue to transfer to the Ethereum network.

Recently, the transaction fees of the Ethereum network have exceeded the transaction fees of the Bitcoin network twice, which shows the prosperity of the Ethereum network, proves the health of the Ethereum network, and is also one of the proofs of the Ethereum network's ability to capture value.

The Bitcoin network has used data to show its own expensiveness. As of October 6, the total transaction fees of the Bitcoin network have approached US$1 billion, and mining revenue is about to exceed US$15 billion.

This article will use data to tell you some important data about the crypto market so that you can better understand the crypto market.

1. Data Summary

BTC's market cap and realized cap continued to decline over the past week, falling by 3.1% and 0.4% respectively. On the other hand, ETH's market cap grew over the past week, with a 1% increase in market cap and a 0.7% increase in realized cap. ETH's active addresses also surged, increasing by more than 15.5%.

BTC and ETH also saw significant drops in their adjusted transfer value over the past week, by more than 28%. LTC and BCH also had a bad week in terms of adjusted transfer value, both falling by more than 47%. However, XRP is a different story. XRP's adjusted transfer value increased by 22.5% over the past week.

Highlights

ETH continues to challenge BTC for the throne of daily transaction fees.

ETH daily fees briefly surpassed BTC daily fees on September 28 and 29, both times with a gap of about $20,000. However, BTC has since taken the lead again. On October 6, BTC's daily transaction fees exceeded $128,000, while ETH was just over $66,000.

BTC’s total fees (i.e., cumulative fees ever) are approaching $1 billion .

As of October 6, BTC’s total fees are $990,237,685. BTC’s total fees should pass the $1 billion milestone around October 14. Coincidentally, BTC’s miner revenue (including fees and block rewards) should reach $15 billion around the same day (maybe a day or two).

2. Market Data

Tether on Ethereum Almost Surpasses Tether on Omni

The long-term trend of Tether supply moving from the Omni protocol to ERC-20 tokens on the Ethereum blockchain continues.

While Tether has not publicly disclosed why they are converting the supply issued on Omni to Ethereum, market forces suggest that this trend should continue. Possible explanations include an effort to move Omni away from a single, largely unmaintained protocol and take advantage of strong wallets, tools, and infrastructure supporting ERC-20 tokens.

Since Tether is primarily used by active traders engaging in arbitrage, trading Tether via Ethereum offers many advantages, including faster first confirmation times, quicker withdrawal and deposit times, and lower fees.

The current Tether supply is 4.1 billion, of which 2.15 billion are on Omni (note: BTC network) and 1.96 billion on Ethereum. A small portion is also issued on other blockchains, including 140 million on Tron and 550 million on EOS.

The most recent supply change occurred on September 16, when the Tether Treasury destroyed 400 million on Omni and subsequently issued the same amount on Ethereum.

Tether supply decline provides more insight into relationship with Bitcoin price

Although the exact mechanism for why additional Tethers are issued is unclear, several explanations have been proposed. One set of explanations given by Tether representatives is that Tethers are occasionally issued to fulfill future purchase obligations of traders.

The large issuance of Tether is purely for convenience. Another set of explanations is that it is conspiratorial in nature, arguing that Tether and its associated entities may be involved in price manipulation. The lack of transparency leads to these explanations.

Regardless of which explanation is closest to the truth, both explanations may suggest a relationship between Tether issuance and future price action. There is also a second-order effect, that is, the belief that this statement is widely known and shared may drive trader behavior and make this relationship self-confirmed.

Recent changes in Tether supply provide more observations for studying this relationship. In August, Tether Treasury destroyed 300 million Tethers on Omni, resulting in the second reduction in Tether supply in history. Below we show the one-month change in Bitcoin price in blue and the one-month change in Tether in red.

Recent price action shows Bitcoin price moving lower following (with a short lag) a drop in Tether supply, just as it did in a similar situation in late 2018.

The relationship between Tether supply and Bitcoin price is worth further study. Interesting areas of research include analyzing the exact timing of transactions between Tether theasury and exchanges.

Despite increasing regulatory scrutiny and lawsuits against Tether, it remains a vital component of the cryptocurrency market and its systemic importance continues to grow. The market share of Tether trading volume on Binance has recently approached 75% and shows a long-term growth trend.

Note: Realized Cap is a metric created by Coin Metrics that estimates the market value of each Bitcoin supply at the price at which it was last transferred.

Therefore, if someone transferred 1 BTC in 2017 and the market price was $2,500 at the time, the cost price of the coin would be $2,500, not the current market price of $10,000. This provides a more realistic measure of the economic significance of cryptocurrencies. According to calculations, the current market average cost of Bitcoin is approximately $5,585.97. According to the trend, this number continues to grow.

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Source: Coin Metrics' Newsletter.

Translator: Chuan, special author of Blockchain Research Society.

Statement: This article is the author’s independent opinion and does not represent the position of Blockchain Research Society (public account), nor does it constitute any investment opinion or suggestion. The pictures are from the Internet.