Bitcoin & Ethereum Fees Jump Up As Holders Rush To Sell | Bitcoinist.com

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Data shows both Bitcoin and Ethereum have observed a spike in the transaction fees over the past couple of days as holders have rushed to sell amid the crash.

Bitcoin & Ethereum Transaction Fees Shoot Up

The “transaction fees” is an amount that users making transactions on the network have to pay in order to send the transfers through.

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Depending on the crypto network, either part of the transaction fee or the entirety of it goes to the miners (or the validators).

When there are a large number of transactions happening on the network and the mempool becomes clogged, these miners start prioritizing transactions with the highest fees attached to them.

Related Reading | Market Liquidations Cross $1.22 Billion Following Bitcoin’s Decline Below $23,000

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In such times, users who want their transfers to go through quicker and not be stuck waiting start putting a higher fee.

If network activity remains raised, users start paying an even higher fees in order to outcompete the others, thus leading to the network average shooting up.

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As pointed out by an analyst in a CryptoQuant post, the Bitcoin mean fees per transaction observed a large spike as the crypto’s price plummeted down.

The below chart shows this trend in the indicator.

Looks like the average fees on the BTC network spiked up yesterday | Source: CryptoQuant

Much like BTC, the Ethereum blockchain also saw a huge increase in demand over the past day as investors rushed to sell during the crash.

Here is a chart that shows the trend in the ETH mean max fees per gas over the past few weeks:

The value of the metric seems to have been raised over the past couple of days | Source: CryptoQuant

The “max fee” is the fee per gas that users can maximally attach when submitting a transaction on the Ethereum network.

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Related Reading | Bitcoin Will Hit $100K In 12 Months, Ex-White House Chief Predicts, Despite Crypto Carnage

BTC & ETH Price

At the time of writing, Bitcoin’s price floats around $22k, down 25% in the last seven days. Over the past month, the crypto has shed 25% in value.

The below chart shows the trend in the price of the coin over the last five days.

BTC went to as low as below $21k before rebounding back to the current level of $22k | Source: BTCUSD on TradingView

As for Ethereum, the crypto is trading around $1.2k right now, down 32% in the past week. Monthly losses for the coin stand at 41%.

Below is the price chart for ETH over the last five days.

ETH went down to a low of less than $1.1k during the crash over the past couple of days | Source: ETHUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Author: Hououin Kyouma


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