Average Bitcoin transaction fees have reached their lowest level since April 28.
The average cost of sending a transaction with Bitcoin is now only $ 1,083, according to data from Bitinfocharts.
A little over two weeks ago, on May 20, the average price of a bitcoin transaction was $ 6,647. This was the highest average fee for almost two years – they were not so high since July 2018.
This means that since May 20, the average fee for Bitcoin transactions has fallen by 83.7%.
The jump in transaction fees at the end of May coincided with the buzz around Bitcoin Halving, after which the prize for digging a new BTC was halved. This part of the monetary policy, encoded in the Bitcoin protocol, also effectively halved the revenue from cryptocurrency operations, which meant that miners had to work twice as hard to receive their Bitcoin rewards.
Combined with increased demand for Bitcoin – trading increased due to halving, as some people believed that the price of Bitcoin could increase after the event, following the pattern of previous halving – the demand for processing Bitcoin transactions ‘shot up’ significantly.
But as new, more powerful diggers appeared online – as evidenced by the increased hashing power on the Bitcoin network over the past few days – there were enough Bitcoin miners to handle transactions.
Although more than 80% lower than its May 20 level, the current average fee for Bitcoin transactions is much higher than it was at the beginning of the year. On January 1, it cost an average of only $ 0.287 to send Bitcoin.
This means that today’s figure is still a 277% increase compared to January 1, but if the current downward trend continues, the average transaction fee may return to levels at the beginning of the year.
In fact, just two weeks before transaction fees last rose to today’s levels, on April 12, the average transaction fee was $ 0.39.