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Bank of America Says Blockchains Have Intrinsic Value, Citing Transaction Fees
The bank's report, however, noted that the fees on the Bitcoin and Ethereum chains have fallen this year.
By Will Canny
Updated May 11, 2023, 6:55 p.m. Published Aug 3, 2022, 10:56 a.m.
Blockchains and the applications that run on them have intrinsic value, Bank of America noted in a research report, saying it rejects regularly heard claims to the contrary.
In June, Bank of England Governor Andrew Bailey echoed negative sentiment about cryptocurrencies in comments to Parliament, saying the asset class has no “intrinsic value.”
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The Ethereum blockchain has generated about $3.9 billion in transaction fees so far this year and generated about $9.9 billion in fees last year. Last year's total was 1,558% more than the year before, the report published Friday said.
The Bitcoin blockchain has produced around $93 million in fees year to date, compared with about $1 billion for all of last year, the report added.
Ethereum transaction fees likely declined year to date as holders “moved to the sidelines,” the bank said. Bitcoin fees have probably fallen since April 2021 because of the adoption of the Lightning Network, which allows for smaller and instant bitcoin (BTC) payments.
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Bank of America says it is not yet able to forecast cash flows for blockchains because they are unpredictable in the “nascent industry." Blockchains generate cash flows via transaction fees from validating native token transactions or by validating transactions from applications that run on top of the blockchain.
Cash flows in the form of transaction fees are expected to accelerate for blockchains that have strong user growth and development in addition to a clear use case, the note said.
Read more: BofA Says Ethereum Needs Scalability Improvements to Hold Its Market Position
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
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Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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