In the last few weeks, the Bitcoin network has seen a rise in transaction fees, now at levels similar to those in the summer of 2019.
During periods of increased activity in the Bitcoin network , transaction fees tend to jump. Although far below what we saw at the end of 2017, Bitcoin fees have been rising since the end of April.
Fees for Bitcoin transactions
Since the end of April, Bitcoin has seen a jump in transaction fees. This trend continued in May. At the time of writing, the average Bitcoin transaction fee is about $ 2.76.
The last time fees were so high was in July 2019. You may remember that during that time, BTC broke above the $ 10,000 level and reached $ 13,200.
Matt Greenspan recently pointed out the parallels on Twitter.
This comes just months after some of the lowest transaction fees recorded recently. As reported in February, the fees were only around $ 0.50, mostly due to the grouping of transactions and the acceptance of SegWit.
Adjustment after halving
There is some speculation that the high fees are representative of a Bitcoin correction after halving. Now that miners are earning 50% less BTC than before, they need a much higher price to strike a balance. At this current price level, miners are experiencing serious difficulties.
However, it should be noted that the largest cryptocurrency has not yet solved its problem with transaction fees. If it wants to be ” digital gold”, then the security it offers makes these fees insignificant. Currently, however, it is too expensive to use for day-to-day transactions.
This is partly because other blockchain networks ” wrap ” Bitcoin to compensate for the slow speeds in their own network. The coated BTC of Ethereum , for example, now costs $ 20 million according to DeFi Pulse.
However, Bitcoin remains much cheaper than traditional banking, which often charges excessive amounts for international transfers. Bitcoin still has an advantage – but ultimately we need to pay attention to this increase in transaction fees.