Since July 2019, the ratio of Bitcoin's market value to transaction fees has briefly fallen below that of Ethereum for the first time

ChainCatcher news, according to The Block, data shows that the 7-day moving average of the Bitcoin market cap to transaction fee ratio has fallen below that of Ethereum for the first time in recent times. This phenomenon has not occurred since July 2019.

Recently, with the popularity of Bitcoin's new token standard "Rune," transaction fees on the Bitcoin network have also risen. Data indicates that the 7-day moving average of Bitcoin's average transaction fee has exceeded $40, about 10 times that of Ethereum's $4.10. At the same time, the total fees paid on the Bitcoin network have also surpassed those on Ethereum, with its 7-day moving average climbing to $25.77 million, setting a new historical high.

The market cap to transaction fee ratio can be seen as the price-to-earnings (P/E) ratio of blockchain networks. Earlier this month, the moving average of Bitcoin's ratio was 2400, while Ethereum's was only 118.33. However, on April 25, Bitcoin's ratio had dropped to 220.77, below Ethereum's 227.12.

Although this does not mean that Bitcoin is undervalued and Ethereum is overvalued, it does reflect the significant demand brought about by the Rune protocol impacting the Bitcoin network. However, the reversal of this ratio is only temporary, as Bitcoin fees have recently begun to slow down.