Maximise your Metaverse potential, giving you daily rewards and a passive income of 0.5% daily I'm going in!

Over 50% of Bitcoin transaction fees have reduced in 2021

3 min reading

Bitcoin (BTC) transaction fees have dropped from $4.40 to $1.80 this year, a 57.97% decrease, What can be several factors leading to this result let's see

Transaction fee.jpg

A YCharts analysis shows that Bitcoin (BTC) transaction fees have dropped from $4.40 to $1.80 this year, a 57.97% decrease. Several factors are contributing to this decline.

  • It may have been triggered by the rapid expansion of the Bitcoin Lightning Network, through which transactions are done off the blockchain.
  • A Bitcoin transaction costs a fee, which is split among miners, when a network is crowded and demand for transaction processing exceeds miners’ capacity, users typically pay higher fees.

Due to high demand for bitcoin, the average transaction fee on the Bitcoin network rose to all time high $62.8 per transaction in the month of April. The spike occurred because China-based miner outages slowed block production at a time when the network was experiencing high transaction volume.

Bitcoin miners became less skeptical and didn’t lose interest in processing transactions, which may explain the drop in costs. As a result, the mining difficulty, which is a measure of how hard it is to validate a Bitcoin transaction, falls.

It’s also possible that the declining transaction costs are due to the decongestion of the mempool, the pool that holds pending transactions until they’re confirmed. Once a transaction is sent to the Bitcoin network, it stays in the mempool until it’s confirmed, considering that each Bitcoin block is 1MB in size, a large mempool may encourage miners to prefer more lucrative transactions. In these instances, customers are forced to pay more for their transactions to avoid getting stuck in the mempool, raising the overall cost of transactions on the Bitcoin network. In recent months, the number of transactions has dropped significantly. In early 2021, there were more than 350,000 transactions per day on average, but the number has now dropped to somewhere between 250,000 and 213,000 transactions per day on average.

One more reason for the drop in transaction costs may be because traders and holders of Bitcoin use less BTC. This decrease in demand causes the cost per token to fall, which reduces transaction costs. Also Ethereum fees have fallen with the rest of the cryptocurrency market, The average Ethereum network transaction fee currently is $4.90, after peaking at $69.92 on May 12, 2021.

Bitcoin traders being relaxed after Bitcoin price has returned to $57,000 as a new week unfolds, ending a heavier price drop in past few weeks.

Currency Exchange rate Buy cryptocurrency

Buy crypto now

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the Lushup Holdings FZ LEE. Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is Lushup Holdings FZ LEE, Fujairah - Creative Tower, P.O.Box 4422 Fujairah, United Arabs Emirates.

The full document to read the ommyo privacy policy is available in this document.

Advanced settings can be changed in your browser.