Cardano, the third largest smart contract platform by market capitalization, has seen a significant rise in transaction fees, according to Messari data.
On May 28, Cardano network transaction fees hit a record high of $15.2K, the highest since Aug. 11, 2022, indicating increased network activity and demand. Just a month prior, on May 1, the fees were at a considerably lower level of $8.4K. Despite these numbers, when compared to the transaction fees of Bitcoin and Ethereum, Cardano still claims the lowest transaction fees. Bitcoin, the largest cryptocurrency by market cap, recorded a transaction fee of $1.76 million in the last 24 hours, a stark contrast to Cardano’s $15.2K.
Ethereum, the second largest cryptocurrency and the leading smart contract platform, clocked even higher transaction fees, totaling $9.16 million. These numbers suggest that, despite Cardano’s recent surge in fees, it still maintains an advantage in lower transaction costs. The primary reason for the significant difference in transaction fees is due to the underlying technology of these platforms. Cardano was designed to handle a larger volume of transactions per second (TPS), which further reduces the cost per transaction. As reported by U.Today, Cardano recently experienced a significant 91% increase in its decentralized exchange (DEX) volume over the past week, rising to $68.5 million. The surge is attributed primarily to increased activity on Cardano-based DEX platforms, especially Minswap, which accounted for 90.4% of the total DEX volume.