In the last few days we are witnessing a real recovery of the cryptocurrency market with all the positive values and, above all, the price of Bitcoin (BTC) that has reached 11 thousand dollars, a symptom of a general recovery, but this context has a negative aspect concerning the fees.
In fact, if it is true that the price increases, the cost of fees is also increasing, a value that is linked both to the relationship with the price of the asset and to the clogging of the mempool in which transactions wait before being processed.
If we look at the data provided by Coinmetrics on the relationship between fees and asset price, we can see that fees are increasing more and more:
From the chart we can see how the fees increased in mid-May, when they almost reached $4, well above the current $2, while Bitcoin had a value of $9,500 and transactions were about 276 thousand.
But things have changed in recent months.
We see in fact that the price of Bitcoin is increasing, as well as the number of transactions, which have exceeded 326 thousand.
And so also the fees are starting to grow, just in conjunction with the increased price of the last few days with an upward trend.
The Ethereum fees
We find the same pattern on the Ethereum (ETH) blockchain, but in this case the increase has been more gradual but still constant and doesn’t seem to hint at a decrease.
Transactions at the beginning of May were just 700 thousand but have almost doubled in recent times and so even the fees have gone from an average of $0.06 to almost $1, not to mention those more complex transactions that come to ask even $21 per transaction.
In this case an advantage can be obtained by making transactions at certain times to save on gas.
All this makes suspect, to some users who have analyzed this data, that it is possible to glimpse a bullish movement throughout the market and therefore that in the coming days and weeks we will see figures even higher than the current ones.
One month update on this model for predictive timing of macro bull runs, this should be it 🤞.
Bullishness returning 🙂.
Alts frothy, ETH getting a DeFi tailwind, volatility returning, BTC mempool peaking, BTC txs clogging, this is all great signs for the months ahead. https://t.co/w7GisIruTC pic.twitter.com/nXVHI7YY3R
— Willy Woo (@woonomic) July 26, 2020
It is difficult to say whether or not this bull run has started, also because for the moment the market seems to have returned to lower levels than yesterday’s records, so it is also possible that it was more of a bull trap.