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Bitcoin network transaction fees dropped by 18% this week after a previous 27% decrease. Bitcoin network transaction fees continue to decline months after the last peak during the halving event. Data from IntoTheBlock shows that fees in the leading crypto network dropped by 18% this week after a previous 27% decrease. The continuous decline has brought Bitcoin fees to their lowest level since November 2023.
What is Happening in the Bitcoin Ecosystem?
Three months ago, Bitcoin recorded the highest transaction fees among all protocols, including Ethereum. Just days before the last Bitcoin halving event, as activity increased, the network’s fees surpassed others consecutively. One of the biggest factors in the fee increase at that time was the launch of the Runes protocol on the day of the halving.
Runes allows the issuance and transfer of fungible tokens on the network and combines this new development with the already existing Ordinals protocol, which introduced non-fungible tokens on Bitcoin, accelerating activities and thus increasing fees.
However, transaction fees began to decline a few days after the halving event and dropped from 75% recorded before the event to 35% of Bitcoin miners’ revenue. On the day of the halving, daily Bitcoin fees soared to an all-time high of 80 million dollars, but at the time of writing, weekly fees on the network were recorded below 6 million dollars.
Details on the Subject
Data from Mempool.space showed that the average cost of a Bitcoin transaction was approximately 5 sat/vByte, valued at 0.0029 dollars, far from the 90 sats/vByte (8.50 dollars) recorded in mid-April. Additionally, information from YCharts reveals that Bitcoin currently collects less than 1 million dollars in daily transaction fees. In fact, the last time the network recorded 1 million dollars in transaction fees was on July 3rd; on July 11th, the fee amount was 721,599 dollars.
The decline in Bitcoin transaction fees can be attributed to various factors, primarily the decrease in network activities, which is somewhat related to the downturn in the boundary market. Bitcoin has experienced a significant loss in value over the past few weeks, dropping to a level not seen since late February. The main reason for the decline, German authorities’ surplus, may soon decrease, preparing Bitcoin for a potential rise. Whether the network’s transaction fees will align with this is yet to be known.
