The average fee paid for a transaction on the Bitcoin network has fallen roughly 84% since the halving hype in mid-May, where users were paying an average of $6.6 for each BTC transaction.
According to data from BitInfoCharts, on May 2’ the average transaction fee on the Bitcoin network hit levels that hadn’t been seen since in nearly two years, as the fees weren’t that high since July 2018.
After May 20, however, the average transaction fee on the Bitcoin network started falling and is now close to $1, representing a decline close to 85% from this year’s high. In early January, however, users were paying less than $0.30 per transaction on average.
Bitcoin’s average transaction fees started rising around May because of the halving event, that saw block rewards on the flagship cryptocurrency’s network drop from 12.5 BTC to 6.25 BTC per block. Data shows that the drop in transaction fees is correlated to a drop in the average number of confirmed transactions on the network.
According to CryptoCompare, up until the halving event, there were an average of 350,000 transactions being confirmed on the cryptocurrency’s network per day. These then fell to a range between 250,000 and 280,000 transactions being confirmed per day, with a recent spike to 310,000 seen earlier this month.
Bitcoin’s average transaction fees, it’s worth noting, hit an all-time high of $54 in December 2017, when BTC’s price hit an all-time high close to the $20,000 mark. Since then, several features have been implemented to better use the 1 MB. These include Segregated Witness (SegWit) and transaction batching.
Featured image via Pixabay.