Does anyone know why this is the case? Surely it would drop right since the fees are outrageous and would move other people to buy other coins?
Cause when you are hodling you don't care about transaction fees.
OK let's assume you are right. --Because everybody is holding-- would be the answer to the OP's question. But, let me ask this: why are the fees so high and transaction backlog 130k+ if everybody is holding (so nobody is transacting, I assume)?
Actually the OP is right, what we are seeing right now makes little sense and begs for explanation
EDIT: maybe the correct answer is that everybody is holding and if not - the demand is on the buying side.
Agreed. I think that more people is on the buying side and holding later that's why the bitcoin price is not dropping even if the sending fees are so high. It seems that bitcoin has been transitioning from a mode of transaction into an investment thing, that's why few people are concerned that transaction fees are high.