Bitcoin Transaction Fees Fall 91%, Back to Pre-Halving Levels – Finance Magnates

The average fee for a transaction on the Bitcoin network has fallen roughly 91% from $6.56 on May 20th to just $0.56 on June 14th, reaching back below $1. The amount represents a low that the network hasnt seen since April, before the Bitcoin halving that took place on May 11th.

The Most Diverse Audience to Date at FMLS 2020 Where Finance Meets Innovation

Over the past several days, falling transaction fees have coincided with a small slump in the price of Bitcoin: on Thursday, June 11th, Bitcoin briefly reached as high as $9,930; at press time, that figure was just $9,160.

However, Bitcoins price and the amount paid off in transaction fees have not always correlated throughout the past several months; when Bitcoin transaction fees were at their highest on May 20th, the price of Bitcoin was roughly $9,685; as transaction fees were falling on June 2nd, several weeks later, the price briefly rose above $10,100.

Fees started to notably increase several weeks before the halving occurred. On April 28th, the average fee was $0.66; by May 1st, that figure had nearly quintupled to $2.84.

On the Bitcoin network, transaction fees typically increase when the network is experiencing periods of heavy usage; because the Bitcoin network can only process between 3.3 and 7 transactions per second, a backlog of transactions can easily form during periods of high trading volume.

Therefore, its no coincidence that as Bitcoins fees increased, Bitcoins mempool sizewhich is the aggregate size of transactions waiting to be confirmedalso skyrocketed during the periods when Bitcoins transaction fees were at their highest.

FBS CopyTrade Became the Best Application for Copy Trading in 2020Go to article >>

Ryan Watkins, who works as a research analyst in Messari crypto, pointed out on Twitter that while fees have continued to fall on the Bitcoin network, there was a prolonged spike in the price of transactions on the Ethereum network, bringing fees on Ethereum above Bitcoins for several days.

While Ethereum fees have previously surpassed Bitcoin fees multiple times in the past, most instances were just momentary spikes, a report from Messari reads. The last time Ethereum fees were above Bitcoin fees on a sustained basis was mid-2018, during the tail end of the ICO craze.

View original post here:
Bitcoin Transaction Fees Fall 91%, Back to Pre-Halving Levels - Finance Magnates