Bitcoin transaction costs have seen a significant decline following a record high, drawing attention from the cryptocurrency community. Let’s delve into the specifics of this development.
1. Plunge in Bitcoin Transaction Fees: After reaching a record high of $128 on April 20, the average charge for Bitcoin transactions has dropped notably. As of April 21, medium-priority transactions were averaging $8–10. This reduction is a welcome relief for Bitcoin users who were previously grappling with steep transaction fees.
2. Record-Breaking Fees During Bitcoin Halving: The fourth Bitcoin halving occurred on April 20, coinciding with a surge in transaction fees. The halving, which took place at block height 840,000, was a significant milestone in the network’s history. ViaBTC, a Bitcoin miner, received a fee of 37.7 BTC ($2.4 million), setting a new record for the network’s 15-year history. This substantial fee underscores the heightened activity and demand generated by the price reduction.
3. Comparison with Ethereum: Bitcoin’s transaction costs during the halving amounted to $78.3 million, surpassing Ethereum’s fees by more than 24 times. This comparison underscores Bitcoin’s dominance in terms of transaction volume and costs.
4. Sustained High Fees and Subsequent Decline: While block fees remained elevated until around block 840,200, they have since decreased to approximately 1-2 BTC. This decline suggests that transaction costs will once again become more manageable for Bitcoin users.
5. Impact on Bitcoin’s Price: Notably, the price of Bitcoin did not experience significant fluctuations following the halving event. Despite the split, Bitcoin saw a modest 1.5% increase, reaching $64,840. This price stability indicates that the market has factored in the impacts of the halving and is adjusting accordingly.
Source: blockchain.news
