Bitcoin Transaction Fees Decrease Significantly After Spike
After a drastic increase in Bitcoin transaction fees last week, the fees have now significantly decreased, bringing relief to users. Medium and high-priority transactions were reaching unprecedented levels of $146 and $170, but recent data shows a substantial drop in fees.
Bitcoin Transaction Fees Normalize Post-Halving
The Bitcoin mempool, where all valid transactions awaiting network confirmation are stored, currently lists the fees for medium and high-priority transactions at $10.85 and $11.32, respectively. This reduction in fees comes after the much-anticipated Bitcoin halving, which impacts transaction fees and miner revenues.
- The halving reduced the reward for mining new blocks
- Decreased supply of new BTC could potentially increase transaction fees
Despite predictions of increased fees post-halving, the fees have now normalized to levels much lower than their peak after the event.
Impact on Miner Revenue
Miners have also seen a decline in potential earnings per hash, dropping from $182.98 per hash/day before the halving to $76.68 currently. This suggests that the halving’s impact may not be as severe as initially expected, at least in the short term.
“While historical data has been useful in analyzing previous halvings, the current Bitcoin market dynamics are heavily influenced by spot Bitcoin ETF inflows. Institutional demand for Bitcoin has been high this year, overshadowing miner sell volume,” shared Ken Timsit, Managing Director at Cronos Labs.
Despite economic shifts, Bitcoin has maintained a relatively stable market price, currently trading above $66,000.
Introduction of Runes Protocol
The Runes protocol was introduced alongside the halving to help mitigate revenue losses by boosting Bitcoin on-chain activity. This initiative resulted in a significant spike in Bitcoin mining revenue, exceeding $100 million. However, these collections have not fully replaced the lost revenue as effectively as hoped.
- Lucas Outumuro, Head of Research at IntoTheBlock, labeled the spike in revenue as “absolutely insane”
- The true challenge lies in the sustainability of this momentum
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