On-chain data reveals that Bitcoin users paid a total of $440 million in transaction fees last quarter, equaling the fees paid on the Ethereum blockchain. According to market intelligence platform IntoTheBlock, Bitcoin transaction fees saw a sharp increase, reflecting the rise in network activity.

During high traffic periods, users must pay higher fees to expedite their transfers due to the network’s limited transaction capacity, leading to increased fees as users compete for validation. While Bitcoin's transaction fees rose by 61% from the previous quarter, Ethereum users paid 63% less in fees, totaling $441 million, just $1 million more than Bitcoin.

This decline in Ethereum fees is attributed to the shift of transactions to Layer 2 solutions. In contrast, Bitcoin's fee increase is driven by the introduction of the Runes protocol, which has spurred transaction activity.

Despite high fees on both networks, Litecoin remains the cheapest network for transactions. Currently, Bitcoin's price hovers around $60,800 after a recent dip.