The Decline in Bitcoin’s Onchain Fees
Since mid-December 2023, there has been a significant decrease in Bitcoin’s onchain fees. The average fees have fallen by over 69%, currently amounting to $11.17 per transfer. A transaction with a median size fee will cost around $4.32.
The Cost of High-Priority Transactions
For high-priority transactions, the cost is now 42 sats/vB, or $2.66 per transaction. No-priority transactions have a fee of $2.28 per onchain transaction. Currently, there are 262,143 pending transactions, causing congestion in the network with block intervals longer than usual.
The Backlog and Reduction of Unconfirmed Transactions
Processing all the unconfirmed transactions will require 546 blocks or 743.83 megabytes of block space. There has been a reduction in the backlog of unconfirmed transactions in the past week, coinciding with a slowdown in Ordinal inscription mints.
The Bitcoin Hash Price and Onchain Fees
The Bitcoin hash price, which estimates the daily value of hashing power, stands at $85.66. Last week, onchain fees were higher, with 351,371 transactions in the queue awaiting miner approval. The congestion and fee structure reflect the dynamic nature of Bitcoin’s network.
Hot Take: Bitcoin’s Onchain Fees and Network Challenges
Although Bitcoin’s onchain fees have declined since their peak in December 2023, they still remain relatively high. The ongoing congestion and challenges in balancing demand, transaction processing speed, and cost highlight the dynamic nature of Bitcoin’s network. While there has been a reduction in unconfirmed transactions, the network is still experiencing delays. It will be interesting to see how these challenges are addressed and resolved, as Bitcoin continues to evolve as a digital currency.
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