Bitcoin Transaction Fees Drop as Mining Revenue Soars
The cost of transaction fees for Bitcoin has decreased, with the average fee per transfer standing at approximately $5.89 as of November 24, 2023. This marks a significant decline from the peak of over $18 per transaction seen on November 16 and 18. The fluctuating nature of block space costs is evident in the decrease from the previous day’s average fee of $14.06. Despite the drop in fees, November’s mining revenue has already surpassed October’s figures. Miners have earned a total of $945 million, including transaction fees and the subsidy, with $124.98 million coming from fees alone. It is likely that miners will surpass the 2023 record of $125.92 million in fee revenue within the next five days.
Surge in Inscriptions and Unconfirmed Transactions
Data from Dune Analytics shows a surge in inscriptions, with over 300,000 mints daily and a peak of more than 475,000 inscriptions on November 19. Bitcoin miners have processed upwards of 289,000 inscriptions as of November 25, leading to over 200,000 unconfirmed transactions in the mempool. As of November 25, there are 206,697 unconfirmed transactions, resulting in a backlog of approximately 269 blocks worth of space.
Transaction Fee Metrics and Revenue Growth
Mempool.space reveals that the current transaction fee for a “no priority” transaction is estimated at $1.17 or 22 sat/vB, while a “high priority” transaction costs $2.38 per transaction or 45 sat/vB. Despite the drop in fees, November’s BTC mining revenue has already exceeded October’s figures. Miners have earned $945 million in total, including transaction fees and the subsidy. At 4:00 p.m. (ET) on November 25, miners have accumulated $124.98 million from fees alone, nearing the 2023 record of $125.92 million in fee revenue set in May.
Hot Take: Bitcoin Transaction Fees Decrease as Mining Revenue Surges
The cost of Bitcoin transaction fees has cooled down after reaching a peak of over $18 per transfer. As of November 24, the average fee per transaction is approximately $5.89. This decrease in fees comes as November’s mining revenue surpasses October’s figures, with miners earning $945 million in total. Additionally, there has been a surge in inscriptions and unconfirmed transactions, leading to a backlog of over 200,000 transfers in the mempool. Despite the drop in fees, it is expected that miners will soon break the 2023 record for fee revenue.
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