Recent data on declining blockchain fees have spurred discussions about potential growth in on-chain activity. Expert Jamie Coutts highlights key factors contributing to this process.
Fee Compression and Historical Cycles
According to Jamie Coutts' chart showing the structure of blockchain fees, there has been a decline in average fees since early 2024, dropping from over 35 million to below 18 million. Coutts notes that previous fee decreases, when paired with rising global liquidity, served as precursors to large-scale on-chain expansions. This emerging macro setup reflects previous cycles observed in 2019 and 2021, which eventually led to spikes in usage. Coutts suggests that current conditions may stabilize fees within a tightening range, potentially setting the stage for renewed growth.
Institutional Use and On-Chain Migration
Coutts emphasizes that a new wave of institutional integration is inevitable, naming Amazon and government entities as likely entrants into blockchain-based operations. Reduced costs and improved infrastructure could unlock scalable blockchain solutions across retail, logistics, and public administration. He posits that if volume compensates for falling fees, as Coutts expects, the next phase could see on-chain networks absorbing significantly more transaction flow across both enterprise and sovereign sectors.
The Future of Blockchain
According to Jamie Coutts, the future of blockchain may be tied to a significant transition to on-chain solutions if participation volumes are to grow. He points out the possibilities that might arise from the adaptation of major retailers and government entities to blockchain technologies, leading to a more efficient ecosystem of the digital economy.
The decline in blockchain fees, according to experts, creates favorable conditions for growth in activity. Institutional adoption and improved infrastructure may act as catalysts for significant changes in the digital economy.
