Bitcoin’s price tanked for the better part of this week. In the last three weeks, Bitcoin’s volatility has been at ATH. The price drop follows the German government offloading 50,000 seized BTC.
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To that end, BTC transaction fees on the Bitcoin network have dropped for months after reaching a high during the Bitcoin halving event. On-chain data from IntoTheBlock shows a dip going back months.
In a post on X (formerly Twitter), they add, “Total Bitcoin fees have decreased by 18% this week, following a 27% drop from the previous week. Weekly fees have now reached their lowest level since November 2023.”
Source: IntoTheBlock
Bitcoin had the highest transaction fees of all protocols three months ago, including Ethereum. For a few days before the last BTC halving event, the network’s fees consistently outpaced all others as traffic increased.
The debut of the Runes protocol, which happened on the halving day, was a key contributor to the increase in transaction costs. Runes allow for the issuance and transfer of fungible tokens on the network and the coupling of this new invention with the previously existing Ordinals protocol.
However, transaction fees fell sharply a few days following the halving, dropping 35% of BTC miner earnings from 75% before the event. Daily BTC fees reached a new all-time high of $80 million on the halving day. However, the network had recorded fewer than $6 million in revenue every week at the time of writing.
According to data from mempool.space, the average cost of a BTC transaction is approximately 5 sats/vByte ($0.0029), a far cry from the 90 sats/vByte ($8.50) recorded in mid-April.
Source: mempool.space
Furthermore, YCharts data shows that BTC generates less than $1 million in transaction fees daily. The network last registered $1 million in transaction fees on July 3; on July 11, the fees totaled $721,599.
The drop in BTC transaction fees can be linked to several factors, the most notable of which is a decrease in network activity, which coincides with an overall decline in the border market. Bitcoin’s value has declined significantly in recent weeks, reaching levels not seen since late February.
At the time of writing, BTC is worth $58,876.12, up 0.3% from an hour ago and 1.3% from yesterday. The value of BTC today is 2.6% greater than it was seven days ago.
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The drop in Bitcoin transaction fees can be linked to several factors, the most notable of which is a decrease in network activity, which coincides with an overall decline in the border market. Bitcoin’s value has declined significantly in recent weeks, reaching levels not seen since late February.
At the time of writing, Bitcoin is worth $58,876.12, up 0.3% from an hour ago and 1.3% from yesterday. The value of BTC today is 2.6% higher than it was seven days ago.
