Ethereum witnessed a turbulent 2019 and in spite of high volatility in the market

2019 is the year that most cryptocurrency projects go on a wild, volatile ride, and receive recognition from the mainstream. However, while some cryptocurrencies soared, others plummeted. According to a recent CoinMetrics study, 50% of the top 18 coins ended the year with an uptrend. And AZCoin News is sorry to say that Ethereum is not one of them.

However, besides the bad statistics about Ethereum, this network still has many bright points worth mentioning. Such as ETH was further ahead of Bitcoin, registering a conversion of over 3.2% to Bitcoin’s 0.8%, or Ethereum miners earnings 4x BTC miners via fees in 2019.

Ethereum’s MVRV ends 2019 with 0.61

MVRV stands for Market Value to realized value. It was calculated by dividing the market cap by the realized cap that has been marked as a potential signal to gauge whether the market participants are in profit or not.


Source: Coin Metrics

Bitcoin’s MVRV in 2019 is 1.33. This number means Bitcoin holders are having a significant profit base from the beginning of the year and still have profited by the end of 2019. Meanwhile, Ethereum’s MVRV is growing, but ending at 0.61. Synonymous hodler ETH made a loss at the end of 2019.

Ethereum trumps Bitcoin in terms of a fee to revenue percentage

The revenue percentage fee is the percentage of mining revenue allocated from the transaction fee. In the long run, the final block reward will be reduced to a minimum or fall due to periodic block reward halving. Therefore, transaction fees become a significant part of mining revenue over the next few years as it will determine the long-term sustainability and security of the chain.


Source: Coin Metrics

In 2019, Bitcoin and Ethereum’s transaction fees were converted to mining revenue. This shows the massive growth in the security of the two networks. However, ETH raced ahead of Bitcoin in terms of the proportion of miner revenue earned by fees as it ended 2019 at 3.2%, as opposed to 0.8% for BTC. This unique figure is more important than credit.

According to AZCoin News, the higher the conversion fee into the mining revenue, the greater the security of the network. Transaction fees allow for a lower issue while maintaining significant protection.

Ethereum had a lead over all other crypto-assets in terms of daily fees

According to the Coin Metrics report, Bitcoin and Ethereum have taken the lead compared to all other cryptocurrencies in terms of regular fees. The average annual BTC is $ 427,000, while Etheruem is $ 95,000. No other crypto asset has an average of more than $ 1,200 in total daily fees for the year.


Source: Coin Metrics

Mining revenue represents the incentive group for Blockchain miners, and the higher the revenue, the more money miners can earn. Therefore, mining revenue has played an essential role in determining the health and overall security of the protocol. Bitcoin alone generated $ 14.2 million in revenue per day for miners, while Ethereum generated an average of $ 2.6 million.

Except for Bitcoin and Ethereum, no single cryptocurrency is capable of making an average of more than $ 900.000 per day.


Source: Coin Metrics

Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like