Last week, this image went viral in the community:
With a dead-on comment from Ric:
This paints a daunting picture of the sector, although it’s usually not wise to consider only one metric without any context.
This image might signal that there is absolutely no demand for other digital assets besides Bitcoin and Ethereum.
Now several counter-arguments might arise here; the most popular one is probably this:
The “cheaper to transact” is a compelling counter-argument. However, if other chains are a lot cheaper, then why do users still pay $400k in fees for the top two platforms?
We can’t measure the quality of a restaurant’s food by its price. However, the restaurant has a competitor literally next door with 1000x higher prices for the same product, but still cashing in $200K every day while the cheaper restaurant nets $200 every day.
Why do these users decide to leave so much money to the more pricey competitor despite having the opportunity to pay 1000 times less?
There are several reasons why they may want to pay more; for extra security and decentralization, a more developed infrastructure, and the trusted social contracts.
Again, it’s not wise to measure only one metric; nevertheless, I do believe there are conclusions to be made out of it.
The data from the image is gathered from Messari.