- The significant increase in bitcoin transaction fees, which have escalated to an average of 133 satoshis per virtual byte (sats/vB) or $19.48 per transaction.
- This fee increase is primarily attributed to the heightened activity on the Bitcoin network, including a rise in confirmed transactions and the growing popularity of Ordinal inscriptions.
Recent data shows a significant increase in bitcoin transaction fees since the beginning of April. The average fee has soared to 133 satoshis per virtual byte, equivalent to approximately $19.48 per transaction.
Bitcoin Fees Climb Amid Halving Preparation
As the Bitcoin network prepares for the upcoming halving after approximately 229 blocks, the cost of on-chain transactions has been steadily climbing. On April 18, 2024, there were around 164,000 transactions awaiting confirmation, with a backlog of 220 blocks.
Transaction activity has been on the rise since April 4, with over 450,000 confirmed transactions per day for the past 11 days. This surge in activity has corresponded with an increase in transfer fees, which began 11 days ago. The average transaction fee jumped from $2.86 to $9.09 within three days.
By April 12, the average fee peaked at $24.39 per transaction. Currently, the average fee stands at $19.48 per transaction, or 133 satoshis per virtual byte (sats/vB). The median bitcoin fee is approximately $11.11 or 75.9 sats/vB, with lower fees around 40 sats/vB resulting in delays as transactions accumulate in the mempool.
An increase in Ordinal inscriptions over the past two weeks has been observed, possibly contributing to the rise in fees. Additionally, anticipation surrounding the upcoming launch of the Runes protocol may also be driving up fees. Runes introduces a new standard for creating fungible tokens on the Bitcoin network using a method different from BRC20 tokens.
The transfer of Ordinal inscriptions and BRC20 tokens has been a major driver of increased fees in the Bitcoin network this year. As the launch of Runes approaches, there is speculation that transaction fees may continue to rise. Reports suggest even Bitcoin’s testnet has experienced a noticeable fee increase due to Runes.
Overall, the recent rise in bitcoin transaction fees underscores the network’s ongoing evolution as it approaches the highly anticipated halving and the introduction of new token standards.
Anticipation Builds for Bitcoin’s Future
The recent rise in bitcoin transaction fees signals the network’s adaptation to new developments and standards, particularly with the upcoming halving and the introduction of the Runes protocol. As the Bitcoin ecosystem continues to evolve, participants should remain vigilant for potential impacts on transaction costs and network dynamics. The coming months will likely offer further insights into the effects of these changes on the broader Bitcoin community.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
