Bitcoin’s Onchain Fees Surge to Near-Record Levels
On November 16, 2023, the average transaction fee for Bitcoin peaked at $18.69 per transfer, hitting a high of 0.00051 BTC. This surge marked the second-largest increase in 2023. However, the following day saw a reduction in onchain fees, although there was still a backlog of approximately 239,862 unconfirmed transactions as of 8:13 a.m. Eastern Time.
Increase in Transactional Activity
Data from bitinfocharts.com and ycharts.com revealed that the Bitcoin network’s average transaction fee was $18.69, with the median fee also escalating to 0.00032 BTC or $11.61 per transfer. This surge in transactional activity can be attributed to the renewed interest in Ordinal inscriptions, a trend that persists.
On November 17, statistics from mempool.space showed that a high-priority BTC transaction incurs a fee of $4.61, while a no-priority transaction costs about $1.64, with the mempool dealing with a backlog of 239,862 pending transactions, awaiting miner confirmation.
Bitcoin’s Average Block Time and Fee History
Data from distinct sources suggest that Bitcoin’s average block time oscillates between 9 and 10.1 minutes. Notably, the average fee on November 16 is the year’s second-highest, trailing only behind fees in May. On November 9, 2023, the average fee rose to $15.86 per transfer, marking the third-highest spike since May’s all-time high.
Before the May 2023 spike, Bitcoin’s highest fee run-up was a high of $62 per transfer 940 days ago on April 21, 2021.
Hot Take: Bitcoin’s Transaction Fees Fluctuate but Remain High
Despite the fluctuation in Bitcoin’s transaction fees, the network continues to experience congestion and high fees, with recent spikes approaching near-record highs. The surge in transactional activity and the resulting backlog of unconfirmed transactions reflect the ongoing challenges with Bitcoin’s scalability and the need for sustainable solutions to manage the network’s capacity and fees.
Benito Cormi, the brilliant crypto analyst who has made waves in the world of cryptocurrency. With his razor-sharp analytical skills and deep understanding of the digital asset landscape, Benito has become a trusted figure in the industry and remains at the forefront, tirelessly researching and analyzing market trends to help individuals and businesses make informed decisions in this dynamic landscape.