Winning the race in cryptocurrency speeds and fees

Winning the race in cryptocurrency speeds and fees

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Chris
Chris

An editor at Coincrop


26 Mar 2022 | 7 min read
34,332 views

I

n today's internet driven economy, speed and cost matters. These factors apply equally to the world of cryptocurrencies.

In this guide:

Disclaimer: All of the information written on Coin Crop is without influence and based on our analysis. No guarantee is offered concerning the accuracy of this information and therefore, any individual following up on it does as such completely at their own risk. Rates are correct at time of publication.

Introduction

When it comes to comparing the benefits of different cryptocurrencies, discussions inevitably turn to transaction speeds and fees. Whilst these factors are important, it doesn’t tell the whole story. In this guide, we compare several of the most popular cryptocurrencies in respect of speeds and feeds.

Bitcoin

Despite being the gold standard in cryptocurrencies, the scalability issues associated with Bitcoin are well known. The proof of work mechanism (PoW) has limited transactions to seven per second at times of extreme usage. This competition for transaction completion leads to bottlenecks in processing resulting in higher fees and transactions delays.

At the time of writing, Bitcoin is trading at $BTC - $47,281 The average cost of completing a transaction in Bitcoin is approximately $2.

In fairness to Bitcoin, the rapidly growing lightning network addresses both the speed and fees problem. Fees are now negligible and transactions happen almost instantly. In theory, the lightning network supports over 7,000 transactions per second.

Holders of this asset can generate returns by lending their asset to the following organisations:

OrganizationTermsRatingAPY Rate
Almond

Yield Farming

Flexible

464%

OKEx

Saving

Fixed (7 days)

52.0%

Raydium

Yield Farming

Flexible

36.9%

Badger

Yield Farming

Flexible

30.5%

Defy

Yield Farming

Flexible

30.4%

Ethereum

The current form of Ethereum is capable of between 15 and 45 transactions per second. The long awaited ETH 2.0 upgrade (expected during 2022) could see an increase to as much as 100,000 transactions per second.

The high transaction (gas) fees associated with Ethereum have been long publicised, sometimes reaching as high as $35. Again, the launch of ETH 2.0 is expected to reduce these fees to near zero.

At the time of writing, Ethereum is trading at $ETH - $3,416.6

Holders of this asset can generate returns by lending their asset to the following organisations:

OrganizationTermsRatingAPY Rate
Biswap

Yield Farming

Flexible

166,455%

Biswap

Yield Farming

Flexible

127,931%

Biswap

Yield Farming

Flexible

94,669%

Biswap

Yield Farming

Flexible

28,765%

Biswap

Yield Farming

Flexible

25,093%

Solana

Solana is a step ahead of many other cryptocurrencies being able to process upwards of 50,000 transactions per second. Transaction fees are similarly competitive costing an average of $0.00025.

At the time of writing, Solana is trading at $SOL - $124.46

Holders of this asset can generate returns by lending their asset to the following organisations:

OrganizationTermsRatingAPY Rate
Tulip

Yield Farming

Flexible

66.5%

Dfyn

Yield Farming

Flexible

66.4%

OKEx

Saving

Fixed (5 days)

62.0%

Apricot

Yield Farming

Flexible

40.9%

Apricot

Yield Farming

Flexible

40.9%

Polygon

Polygon is described as a layer 2 scalable solution capable of achieving upwards of 65,000 transactions per seconds. Fees for make transactions are an average of $0.002.

At the time of writing, Polygon is trading at $MATIC - $1.74

Holders of this asset can generate returns by lending their asset to the following organisations:

OrganizationTermsRatingAPY Rate
Dfyn

Yield Farming

Flexible

183%

OKEx

Saving

Fixed (5 days)

123%

Beefy Finance

Yield Farming

Flexible

62.6%

OKEx

Saving

Fixed (7 days)

60.0%

Beefy Finance

Yield Farming

Flexible

57.3%

Cardano

Cardano is still very much in development currently processing approximately 250 transactions per seconds. Planned upgrades have speculated they could eventually achieve as many as 1 million per second.

Presently transaction fees are an average of $0.31.

At the time of writing, Cardano is trading at $ADA - $1.22

Holders of this asset can generate returns by lending their asset to the following organisations:

OrganizationTermsRatingAPY Rate
Biswap

Yield Farming

Flexible

308,550%

Biswap

Yield Farming

Flexible

147,944%

Biswap

Yield Farming

Flexible

103,205%

Biswap

Yield Farming

Flexible

78,967%

Biswap

Yield Farming

Flexible

69,967%

Polkadot

Presently Polkadot is capable of achieving over 160 transactions per second. The forthcoming parachain functionality could see transaction speeds exceeding many thousands per second.

At the time of writing, Polkadot is trading at $DOT - $22.87

Holders of this asset can generate returns by lending their asset to the following organisations:

OrganizationTermsRatingAPY Rate
CafeSwap

Yield Farming

Flexible

135%

PandaYield

Yield Farming

Flexible

121%

PandaYield

Yield Farming

Flexible

119%

Kebab Finance

Yield Farming

Flexible

40.8%

Value DeFi

Yield Farming

Flexible

38.2%

Dogecoin

Dogecoin is capable of transacting at an average of 33 transactions per second. The present transaction fee is approximately $0.40. 

At the time of writing, Dogecoin is trading at $DOGE - $0.1468

Holders of this asset can generate returns by lending their asset to the following organisations:

OrganizationTermsRatingAPY Rate
Kebab Finance

Yield Farming

Flexible

296%

Beefy Finance

Yield Farming

Flexible

75.5%

PancakeSwap

Yield Farming

Flexible

47.1%

THORSwap

Yield Farming

Flexible

43.0%

Beefy Finance

Yield Farming

Flexible

31.4%

Shiba Inu

Shiba Inu transacts at a rate of 13 transactions per second. Gas fees are paid to the Ethereum network and are thus not competitive.

At the time of writing, Shiba Inu is trading at $SHIB - $0.0000

Holders of this asset can generate returns by lending their asset to the following organisations:

OrganizationTermsRatingAPY Rate
Dfyn

Yield Farming

Flexible

83.5%

Beefy Finance

Yield Farming

Flexible

79.8%

BabySwap

Yield Farming

Flexible

76.4%

BabySwap

Yield Farming

Flexible

34.8%

JetSwap

Yield Farming

Flexible

32.8%

Summary

Transaction and gas fees matter immensely as the plethora of growing demands on blockchains from NFTs, gaming, data record transmission and financial transactions has led developers to build faster and more competitive blockchains.


Chris

Chris

An editor at Coincrop
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