Bitcoin Fees Skyrocket Past $50, Increases 272% in BTC Terms too
While barely noticeable on the longer time frame, in BTC terms, the fees is 0.00093 BTC as block time rises past 15 minutes following the fall in hash rate, which has started to recover.
Bitcoin hash rate has now started to recover after a 40% day-over-day drop over the weekend.
This drop, as we reported, was due to the Xinjiang grid going down, which due to this being dry season, represents a significant share of the Bitcoin network.
According to Bitinfocharts, the hash rate was around 162 Th/s on April 10th, which went down to almost 105 Th/s and now recovered to about 125 Th/s.
Because of this, the block confirmation time increased from the standard 10 minutes to 15.8 minutes, as per Bitinfocharts. Though slowly coming down, it is yet to recover completely.
This, of course, leading to 1.5 transactions being processed per second today, last seen in late March 2020. As a result, transaction count, which has been keeping between 25k to 35k for over a year now, has fallen to 14k, as per Blockchair.com.
With the processing time getting reduced and fewer and fewer transactions confirmed, people are bidding for more and more fees to incentivize miners to put them first in the line. As such, the average fees on the Bitcoin network have gone to $53, last seen in December 2017, during the top of the bull market.
In BTC terms, an increase of 272% has also been recorded from 0.00025 to 0.00093 BTC. But on the longer-term time frame, it is barely noticeable; a slightly bigger uptick was seen in Dec. 2017 at 0.004 BTC.