Bitcoin (BTC) fees soared by 10 times in the last few days driving investors and cryptocurrency users to look for decentralized payment alternatives to the leader. A low-fee narrative could be brewing for cryptocurrencies that offer competitive advantages against Bitcoin in a high-fee environment.
In the meantime, Bitcoin average transaction fees went from $1.13 on October 29, registered by BitInfoCharts, to the current $12.12 average in the last 144 blocks (24 hours), according to mempool.space. Notably, users paid more than $4.3 million in total fees in a 24-hour time frame from November 9.
On November 7, Finbold reported how Bitcoin fees crossed the cost of a Big Mac for the first time in months, at $6.08. Fees have doubled during these two days, suggesting that transactions can continue getting costlier without a clear ceiling.
In the past, these high-fee scenarios have driven demand and liquidity toward alternative cryptocurrencies with a similar proposition to BTC but offering lower fees. With that in mind, Finbold turned once again to ChatGPT to get insights into possible good picks for this context.
ChatGPT-4 top 3 low-fee picks
Interestingly, the tool used for this report is a GPT-4 Telegram bot that allows users to avoid the monthly subscription and pay-per-prompt using Nano (XNO), a cryptocurrency with zero fees and the first pick by ChatGPT’s artificial intelligence.
“Nano stands out in the cryptocurrency space with its zero-fee transactions, making it an excellent choice for a payments-focused cryptocurrency. Nano employs a block-lattice structure, which allows users to transfer funds without relying on miners for transaction verification. This not only ensures instantaneous transactions but also eliminates any associated transaction fees. The lack of fees with Nano is a key advantage for both individuals and businesses looking to maximize the value of their transfers.”— ChatGPT-4
As for its price action, Nano has been trading in a shy but consistent uptrend in the last 30 days. XNO is changing hands by $0.71 at the time of publication, with 14.5% monthly gains from $0.62 per coin and 0.72% losses in the last 24 hours.
“Stellar is another strong contender for low-fee payment transactions. It is designed to facilitate quick and cost-effective cross-border payments. Stellar’s network charges a very nominal fee of 0.00001 XLM per transaction, which helps to prevent spam, yet remains almost negligible for users. As of my knowledge cutoff date, this fee equates to a fraction of a cent, thus positioning Stellar as a cost-efficient payment option while maintaining the network’s integrity and speeding up the validation of transactions.”— ChatGPT-4
Meanwhile, Stellar Lumens (XLM) is showing a similar chart pattern in the month, with slightly higher gains for this longer time frame. Trading at $0.12 by press time, XLM is up 20% in the last 30 days, despite its 4.70% daily losses.
XRP Ledger (XRP)
“Ripple is tailored for enterprise use and aims to enable fast, cross-border payments with minimal fees. Ripple is known for its ability to facilitate near-instant transactions with a fee structure that effectively undercuts many traditional payment networks. As of my last update, Ripple’s standard transaction cost is set at 0.00001 XRP, a fee that is minimal compared to many alternatives and designed to prevent network spam. XRP’s infrastructure and partnerships with financial institutions underscore its practicality for large-scale payment processing.”— ChatGPT-4
Particularly, the XRP Ledger (XRP) has the highest market capitalization among the three low-fee picks and is the month’s best performer. XRP is trading at $0.66 with 32% gains from the $0.50 traded 30 days ago.
Nevertheless, it is important to say that ChatGPT-4 believes that there are “other factors such as security, scalability, decentralization, and adoption” to be considered when evaluating each of these mentioned projects.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.