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Bitcoin transaction fees are falling to earth.
For some time this weekend, transacting on the Bitcoin network has cost more than at any time in history. More activity has led to the launch of protocols for Bitcoin-based meme coins and stronger rewards for miners, leading to higher costs for users. cut in half.
The average Bitcoin transaction fee soared to $127 on Friday due to the quadrennial halving event. Rune ReleasedAccording to data At Blockchain.com. However, the metrics may have been skewed by a few expensive and urgent deals that marked a period of record levels in terms of fees.
For example, one Bitcoin user paid nearly 20 million won in transaction fees. 8 BTC, or $510,000, will be included in the first block of the new era of Bitcoin. The first Bitcoin block after Bitcoin’s Friday halving reportedly contained a total of 37.6 BTC, or $2.4 million in fees. data In mempool.space.
Runes, launched on Friday by Ordinals creator Casey Rodarmor, allows you to create fungible coins from Bitcoin. As brave cryptocurrency fans initially rushed to issue tokens, Runes has cost Bitcoin users 312 BTC (or $20 million) in fees as of this writing. rune alpha. This windfall comes as miners adapt to a new era of Bitcoin digital scarcity.
However, average Bitcoin transaction fees stabilized on Sunday at a level consistent with December’s costs. According to Blockchain.com, the average Bitcoin transaction fee fell 74% from the previous day on Sunday to $34, a sharp decline as congestion on the Bitcoin network decreases.
Bitcoin transaction fees are paid to miners as part of their compensation for confirming transactions and including them in new blocks added to the Bitcoin blockchain. By paying higher fees, Bitcoin users can incentivize miners to include transactions into blocks more quickly.
Typically, the rewards miners receive in fees are greater than Bitcoin’s so-called block subsidy, which was reduced to 3.125 BTC as part of this weekend’s halving. But over the weekend, this long-standing trend was momentarily reversed.
According to Dune, Bitcoin transaction fees will be $81 million after the halving, equivalent to 75% of the rewards miners earned on Saturday. dashboard From investment company 21Shares. The ratio of subsidy compensation to commission the next day was 30%.
So Bitcoin’s latest brush with high fees may be short-lived. But with Bitcoin’s block subsidy newly reduced, miners may be wondering whether the windfall was a one-time mistake or a revenue source to consider in Bitcoin’s fifth era.
Editor: Andrew Hayward
