Bitwise claims Ethereum costs far lower than traditional finance, data questioned with L2 spamming involved

The cryptocurrency asset management company Bitwise cited data indicating that the transaction costs of Ethereum are significantly lower than traditional finance, by as much as ten times, although this data is based on the average fees of L1 and L2.

Is Ethereum's Transaction Cost Far Lower Than Traditional Finance?

Bitwise has been sharing Ethereum data on Twitter in recent days, pointing out that Ethereum excels in remittances, international withdrawals, and transactions compared to traditional finance. See the image below:

Ethereum has reduced transaction costs by an order of magnitude, making transaction costs lower by 10 times or more compared to traditional finance. Historically, when a technology optimizes by a factor of 10 in a specific area, it becomes an unstoppable force.

Comparison of Ethereum Revenue

Bitwise also compared Ethereum's revenue with large publicly traded companies, showing that Ethereum DApp's on-chain total revenue has surpassed that of major enterprises like Robinhood, Etsy, or Moderna.

Bitwise stated:

The revenue from Ethereum-based crypto applications can now be compared to some publicly traded companies, showcasing the resilience, innovation, and vision of the global crypto industry, reminding us that crypto technology is rapidly becoming part of everyday life.

Additionally, Ethereum's daily user base has grown significantly in the first quarter of this year.

Bitwise Data Criticized for Being Misleading

Bitwise's Ethereum data did not resonate positively with the community, as the data was averaged from L2 data from Ethereum, Arbitrum, Optimism, Base, Polygon, and ZKsync, significantly lowering Ethereum's transaction costs and increasing its user base.

Twitter user @TheSpaceJoker pointed out that the data on transaction costs ignores fees for users on centralized exchanges and DEX swaps; @spacecstcrypto also stated that they have never traded on Ethereum at such a low cost of $0.86 in their life.

@MagusDevon also mentioned that transaction costs during certain low Gas periods may be as low as $0.86, but averaging costs between L2 and L1 is poor data practice.

Bitwise CEO: Rapid Changes in Crypto Regulation Landscape

Bitwise's behavior of potentially manipulating data, aside from launching its own crypto ETF, may also aim to garner more optimism towards cryptocurrencies.

Bitwise CEO Matt Hougan previously published a lengthy article at the beginning of this month, emphasizing that crypto has built a powerful "political force" in recent years, but the implications of changes in the regulatory landscape are not fully understood.

He stated:

I have been giving speeches around the world for the past few weeks, but despite my efforts, I have not been able to resonate with this story. I talk about votes, Warren's anti-crypto army, and the astonishing progress of the Ethereum ETF, but everyone just stares at me blankly. This story is too complex, the impact is too far-reaching. After all, Washington's policies have not truly changed. The motion to repeal SAB 121 was rejected, and the Ethereum ETF has not been officially launched. But if everyone can understand the changes in the regulatory landscape, the crypto market has already reached new historical heights.

American Bankers Association: Please, Biden, repeal SAB 121, don't force investors to choose low-regulated crypto platforms