• Bitcoin and Ethereum network revenues spiked in May despite significant headwinds
• Bitcoin revenue jumped 249% YoY while Ethereum fees rose 53.7% in May, according to the ETC Group report
• Regulation and macroeconomics remain key factors even as benefits of tokenization attract major banks
Bitcoin and Ethereum Network Revenues Soared
The research report by ETC Group highlighted a significant jump in network revenue for both Bitcoin and Ethereum over the past month. Despite the market headwinds in May, Bitcoin revenue jumped 249% year-on-year while Etheruem fees rose 53.7%. The growth was driven by ordinals for Bitcoin and enterprise adoption for Ethereum.
Macroeconomic Factors Affect Cryptocurrency Markets
The current crypto market outlook continues to suffer from the US Securities and Exchange Commission’s actions against Binance and Coinbase. In addition, June started off with wild volatility that has pegged prices below key levels. Moreover, macroeconomic factors such as uncertainty around the US debt ceiling debate have weighed on crypto markets.
Regulatory Headwinds Impact Crypto Sentiment
On the regulatory front, the non-friendly approach by the US SEC and UK’s Financial Conduct Authority (FCA) continue to affect investor sentiment negatively. However, despite these obstacles, there was an increase in network revenue for both leading blockchains due to increasing user bases and new technology adoption.
Major Banks Are Attracted By Benefits of Tokenization
The benefits of tokenisation are attracting major banks as well as other traditional financial institutions which are exploring ways to utilise blockchain technology for their operations. This trend is seen as beneficial not just to established firms but also to startups looking to raise funds via token sales or Initial Coin Offerings (ICOs).
Crypto Market Cap Remains Stable at $1 Trillion
Despite all these developments, total crypto market cap remained flat near $1 trillion mark throughout May 2023 according to ETC Group data – indicating a stable demand from investors despite continuing volatility across various digital assets classes