Bitcoin Fees Fall 60% While Transaction Count Declines

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Avatar for Ifeoluwa
4 years ago

According to data from Bitinfocharts, the cost of making a transaction over the Bitcoin blockchain fell to around $2.61 on May 28, down from just over $6.28 six days earlier. As a percentage of revenue for BTC miners, fees have also declined to just under 10% from 21% on May 20.

Transaction costs had soared over 220% since the May 11 scheduled bitcoin supply cut, capping off a rally that began two weeks prior to the event.

The sharp fall in fees is thanks to transaction activity getting back to normal, helping to decongest the network, as represented by the Bitcoin memory pool, called mempool. The memory pool consists of all transactions waiting to be confirmed by the Bitcoin network.

Data shows that the number of unconfirmed transactions in the mempool has dropped by more than 70% over the last seven days, causing fees to decline. A higher number of transactions waiting to be confirmed in the mempool causes the opposite effect on transaction costs, as was the case during and immediately after the halving.

Then, demand for processing transactions on the BTC network outstripped the supply of miners, forcing fees higher as people paid more for faster settlements.

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Comments

The fee of $2.6 is still high. To some extent, this is repelling. Personally, I have to sell my BTC for BCH if the transaction fee does not go down further.

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4 years ago

I did that a long time ago. I don't want to get into a situation where I have to sell BTC because the price is falling sharply and I pay $3 or more for the transaction.

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4 years ago

Your upvoting is highly appreciated. Thanks a lot. I will heed your advice as you are one of the mentors and leaders I cherish on read.cash. Thanks.

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4 years ago

I knew this would happen. I saw this coming. I wont be surprised when people even give up on btc completely. 2dollar is still high for a transaction fee. That wont solve their problems.

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4 years ago