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Bitcoin transaction fees down over 50 percent this year



According to data from YCharts, the average transaction fee for Bitcoin (BTC) has fallen from $ 4.40 to $ 1.80 this year. That is a decrease of 57.97 percent. There are several factors that could have triggered this: 


The rapid expansion of the Bitcoin Lightning Network, where transactions take place outside the blockchain, could have been a reason.


The Bitcoin network generally charges a fee for every transaction. This payment is then shared among the miners. When the network is congested and the demand for transactions far exceeds the supply of miners, users often pay more.


On April 21, the average transaction fee on the Bitcoin network hit an all-time high of $ 62.80 per transaction. At that time, miners migrated from China, which led to failures.


Fees have decreased because bitcoin miners are less skeptical and want to keep processing transactions. When that happens, the mining difficulty also decreases. This shows how difficult it is to validate a Bitcoin transaction.


In this context: Bitcoin and Ethereum are stagnating: transaction values ​​and fees collapse by 70 percent


Another possible reason for the falling transaction costs is the relief of the mempool, in which all transactions still to be processed are collected before they are confirmed. When a transaction is sent to the Bitcoin network, it stays in the mempool until it is confirmed. Since each BTC block has the fixed size of 1MB, a large mempool miner can encourage more lucrative transactions to be preferred.


In these cases, users pay more so that their transactions don't get stuck in the mempool. This increases the transaction costs in the Bitcoin network overall.


The size of the Bitcoin mempool is well below its maximum capacity, as the following graphic shows.


In this context, where will BTC be at the end of November 2021? Five important things to do with Bitcoin this week


The average number of transactions has also dropped significantly in recent months. At the beginning of 2021, there were an average of over 350,000 transactions per day. Now there are only 250,000 to 213,000 transactions per day.


Transaction costs may also have decreased because Bitcoin traders and owners tend to use less BTC. A drop in demand causes the cost per token to drop, which reduces transaction fees.


Meanwhile, Ethereum fees have also decreased . The average transaction fee on the Ethereum network at press time was $ 4.90. On May 12, it peaked at $ 69.92.



At the start of the new week, Bitcoin (BTC) climbed back above the $ 57,000 mark . It has been very volatile for the past few weeks and has fallen sharply in some cases.

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