Bitcoin Users Are Paying $7 USD in Fees Per Transaction After It Spikes 265% Post-Halving

Bitcoin fees are skyrocketing.

Before halving, the average bitcoin transaction fees started soaring to over $3. Post halving, it only accelerated further, and currently, users are paying $7 per transaction.

This is a surge of 1,256% in the past month.

The last time the fees were this high was in February 2018, when the price of bitcoin was coming down from its 2017 bull rally and trading between $8,000 and $10,000.

In June 2019 and 2018 as well, the fees record a spike to $6.8.

The all-time high put in by Bitcoin fees was in December 2017 at just over $55, just a few days after the BTC price made a new ATH.

Avg-BTC-Transaction-Fee
Source: Glassnode

This surge in bitcoin fees is the result of a drop in hash rate that increased the average interval between bitcoin blocks to its highest levels since late 2018. As a result, on May 17, only 95 blocks were mined and in bitcoin's history we only had 8 days with less than 100 blocks.

Halving sentiments continue to affect the market, as decline hash rate has less number of blocks being mined. Bitcoin miners are also selling much less in the market, the first week after the halving 6.5k BTC were sold compared to the average 12.3k per week twelve weeks before the event.

The decrease in the total number of blocks also led to an increase in the size of each individual block. On May 17th, the mean block size reached a new all-time high of 1.32 MB.

BTC Block Size
Source: Coinmetrics

Now that fewer blocks are being produced, there is more competition for block space as such causing this increase in transaction fees. Paying a higher fee leads to a higher chance of miners including the transaction in a block.

“Median fees tend to surge during periods where block space is at a premium,” noted Coin Metrics.

Just like Bitcoin, Ethereum’s transaction fees continue to climb. Its median transaction fee has been surging throughout May, currently above $0.5, as per Bitinfocharts.

While both Bitcoin (BTC) and Ethereum (ETH) transaction fees are showing signs of growth since Bitcoin halving, Bitcoin Cash (BCH), Bitcoin SV (BSV), Ripple (XRP), and Litecoin (LTC) median fees haven’t shown any significant increases.

Although yesterday there was a downward difficulty adjustment of 6%, it is expected to take two more weeks for the bitcoin mining market to find the new equilibrium. Once the blocks start getting mined every 10 minutes, the backlog should clear, and the fees back to normal as have happened in the past.

Bitcoin (BTC) Live Price

1 BTC/USD =$9,504.5362 change ~ -6.00%

Coin Market Cap

$174.81 Billion

24 Hour Volume

$8.38 Billion

24 Hour VWAP

$9.71 K

24 Hour Change

$-570.7009

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,440FansLike
2,795FollowersFollow
4,189FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

China’s Largest Mining Chip Maker, SMIC, Gains Regulator’s Approval On $2.8B IPO

One of China’s biggest semiconductor manufacturer, SMIC, announces plans to raise a $2.8 billion public sale IPO on the Sci-Tech Board of the...

Bitcoin Flash Crashes to $8,600 with BitMEX Shenanigans at Play Again

Bitcoin doing bitcoin things! Today, Bitcoin had yet another moment like March 12, although the price didn’t crash that low. https://twitter.com/100trillionUSD/status/1267835341987340288 Yesterday, Bitcoin jumped as high as...

AVA Labs Integrates Chainlink’s Decentralized Oracles to Improve DeFi Dapps Development

AVA blockchain, becomes the latest platform to add Chainlink, a decentralized oracle system to its platform. The integration of Chainlink to the Dapp blockchain...

Binance Korea to Improve KYC/AML Framework With Coinfirm's Compliance Solution

Binance South Korea unveiled a unique partnership with Blockchain analytics firm, Coinfirm that will help Binance remain compliant with the strict AML framework...

2nd Largest BTC Mining Pool, Poolin, Collabs With BlockFi, To Boost Crypto Lending Service

Poolin and BlockFi have formed a partnership as the latter aims to extend loans to the mining pool. Bitcoin (BTC) and mining equipment...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today