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.

AccessTimeIconAug 3, 2022 at 10:56 a.m. UTC
Updated May 11, 2023 at 6:55 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.”

  • What Does State Inquiry Mean for Ethereum?
    What Does State Inquiry Mean for Ethereum?
  • Solana Passes Ethereum on DEX Volume
    Solana Passes Ethereum on DEX Volume
  • Bee Movie Script Buzzing on Ethereum; Robinhood Benefits From ‘Monster’ Crypto Cycle
    Bee Movie Script Buzzing on Ethereum; Robinhood Benefits From ‘Monster’ Crypto Cycle
  • Spot Bitcoin ETFs See Record $1B in Net Inflows; Ethereum's 'Dencun' Upgrade Goes Live
    Spot Bitcoin ETFs See Record $1B in Net Inflows; Ethereum's 'Dencun' Upgrade Goes Live
  • 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.

    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.


    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Author placeholder image

    Will Canny is CoinDesk's finance reporter.

    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.