Bitcoin and Ethereum fees rise as holders rush to sell
Data shows that Bitcoin and Ethereum have seen transaction fees rise over the past two days as holders rush to sell amid the decline.
Bitcoin and Ethereum transaction fees are rising
The “transaction fee” is an amount that users transacting on the network must pay to send transfers.
Depending on the cryptonet, some or all of the transaction fees are accrued for the miners (or validators).
When a large number of transactions occur on the network and the mempool becomes clogged, these miners start prioritizing the transactions with the highest associated fees.
Related Reading | Market Sell-Off Surpasses $1.22 Billion After Bitcoin Drops Below $23,000
At such times, users who want their transfers to complete faster and not be stuck waiting start charging higher fees.
If network activity remains high, users start paying even higher fees to outperform others, causing the network average to rise.
As one analyst pointed out in an article on CryptoQuant, Bitcoin’s average transaction fees saw a significant increase as the price of the crypto fell.
The following chart shows this trend of the indicator.
It seems that the average fee on the BTC network went up yesterday | Source: CryptoQuant
Like BTC, the Ethereum blockchain also saw a huge spike in demand over the past day as investors rushed to sell during the dip.
Here is a graph showing the trend of the maximum average ETH fees for gas in recent weeks:
The value of the metric seems to have increased in the last two days | Source: CryptoQuant
“Max Fees” are the maximum fees for gas that users can impose when sending a transaction on the Ethereum network.
Related Reading | Bitcoin Will Hit $100,000 in 12 Months, Former White House Chief Predicts, Despite Crypto Carnage
BTC and ETH prices
At the time of writing, the price of Bitcoin hovers around $22,000, down 25% in the last seven days. During the last month, the cryptocurrency has lost 25% of its value.
The chart below shows the price trend of the coin in the last five days.
BTC dipped below $21,000 before recovering to the current $22,000 level | Source: BTCUSD on TradingView
As for Ethereum, the crypto is currently trading around $1.2k, down 32% from last week. The monthly losses of the coin amount to 41%.
Below is the ETH price chart for the past five days.
ETH sank below $1.1k in the last two days crash | Source: ETHUSD on TradingView Featured Image from Unsplash.com, Charts from TradingView.com, CryptoQuant.com
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