The Fall of Bitcoin’s Average Transaction Fee
On Sunday, the average transaction fee on Bitcoin experienced a decrease after reaching a record high the day before, following the network’s fourth halving event. The average fee for each transaction on Bitcoin dropped to $34.8 on April 21, after hitting an all-time high of $128.45 on the halving day. This data is sourced from YCharts. The average transaction fee is a measurement in U.S. dollar terms of the cost incurred when a bitcoin transaction is processed by a miner.
Impact of Runes Protocol on Transaction Fees
The surge in transactions fees was concurrent with the introduction of Casey Rodarmor’s Runes protocol, a new token standard akin to BRC-20s. The launch of this protocol led to a spike in transaction fees as individuals rushed to create rune-based memecoins. Additionally, on April 20, the total transaction fees for Bitcoin surged to $81 million, a significant increase from $7.7 million on the previous day. The network recorded a total fee of $22.37 million on April 21.
- Runes Protocol Launch
- Introduced by Casey Rodarmor
- Similar to BRC-20s
- Caused spike in transaction fees
- Bitcoin Total Transaction Fees
- Surged to $81 million on April 20
- Up from $7.7 million the day before
- Total fee of $22.37 million on April 21
Halving Block and Rewards
On April 20th, the block associated with the halving event appeared to be from the ViaBTC mining pool. The pool received a base reward of 3.13 BTC ($199,579) and an additional 37.6256 BTC ($2,399,135) as fees from the 3,050 transactions included in the block. This information is sourced from Blockchain.com’s tracker. Bitcoin saw a 0.9% increase, trading around $65,700 at the time of reporting.
Price Movement and Current Status of Bitcoin
Bitcoin experienced a 0.9% uptick, trading at approximately $65,700 at the time of the report release. This information was sourced from The Block’s price page. The fall in the average transaction fee on Bitcoin marked a notable shift after the record highs observed during the halving event.
Hot Take: What Lies Ahead for Bitcoin’s Transaction Fees?
As Bitcoin continues to navigate through fluctuations in transaction fees, the impact of protocols like Runes on the network remains a key factor to monitor. With the recent decline in average fees after the halving event, the future trajectory of transaction costs on the Bitcoin network is uncertain. Stay tuned for further updates on how these dynamics evolve and influence the crypto landscape.
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