Bitcoin Fees Record 170 Percent Increase
For most days last month, the performance of Ethereum was not impressive while Bitcoin was able to gain enough momentum that pushed its price to the upside to become the cryptocurrency asset with the best performance.
In recent times, Coinmetrics released the State of the Network report which noted that the market capitalization of Bitcoin increased by 17% within the previous week. Likewise, it said that the active addresses rose to 928,000 (12.2% increment).
Nevertheless, the outstanding statistic was the rise in Bitcoin transaction fees. The fees increased by 170% week after week. It was revealed that network demand is currently operating at an extraordinarily high level.
Data provided by blockchain.com corroborates the increase in Bitcoin fees, as miners’ revenue reached a high level of $19.63 million on May 3, as on the charts. This resulted in an increase in Bitcoin fee-to-revenue ratio by 6% within the previous week to the highest level since June last year. When Bitcoin fee-to-revenue ratio is higher, it is a major indicator of a healthy market.
Moreover, Coinmetrics’ chart revealed an increase in Bitcoin MVRV ratio above normal levels. MVRV is a ratio which compares Market Cap and Realized Cap. It says when the trading price on exchanges is under the fair value and helps to spot market tops and bottoms.
When the MVRV is higher, it shows that BTC is having a higher market value at the moment, relative to its realized value in the cryptocurrency space.
The NVT ratio for Bitcoin is also high after it declined under 1 during the market crash in March. When the NVT ratio is higher, it may be due to higher network usage. It is also higher when investors see the asset as a high return investment.
All of these critical metrics turning green could be a robust reason to say there is improvement in Bitcoin’s network health.