Bitcoin Transaction Fees Stabilize After Surging Post-Halving

Bitcoin Transaction Fees Stabilize After Surging Post-Halving

In a significant turn of events, Bitcoin transaction fees have plummeted from a staggering $146 to just over $10 for medium-priority transactions, following the recent halving event that typically influences both transaction costs and miner earnings.

Just last week, Bitcoin users experienced a sharp increase in transaction fees, with medium-priority transactions costing upwards of $146 and high-priority transactions peaking at $170. According to recent figures, these fees have now adjusted to $10.85 for medium-priority and $11.32 for high-priority transactions.

The decline in transaction fees follows the halving of Bitcoin, an event that reduces the miners’ reward for creating new blocks. This usually results in higher transaction fees as miners seek to compensate for reduced block rewards. However, contrary to expectations, the fees have swiftly normalized to much lower levels than their peak.

Additionally, the earnings per hash for Bitcoin miners have also decreased. Before the haliving, the earnings were as high as $182.98 per hash/day, but they now sit at $76.68, indicating a less severe impact from the halving than anticipated.

Experts have shifted focus to other metrics such as spot Bitcoin ETF inflows to analyze market dynamics post-halving. “Miner sell volume is trivial compared to the influx of demand for Bitcoin, primarily driven by institutional investments this year,” explained Ken Timsit, Managing Director at Cronos Labs.

Despite these economic fluctuations, Bitcoin’s market price has remained relatively stable, with current trading levels above $66,000. The recent introduction of the Runes protocol, designed to boost Bitcoin on-chain activity and compensate for the drop in mining revenue, was met with enthusiasm but has yet to deliver expected results in revenue replacement. Lucas Outumuro, Head of Research at IntoTheBlock, commented on the initial success but questioned the sustainability of this new protocol.

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