Bitcoin Transaction Fees Experience Significant Drop Following Record High
Bitcoin's average transaction fees have dropped to $8-10 for medium-priority transactions, following a record high of $128 on April 20. This surge coincided with the Bitcoin halving, resulting in $78.3 million in fees, surpassing Ethereum 24 times. The highest fee ever recorded was 37.7 BTC ($2.4 million) paid to ViaBTC.
Transaction costs for Bitcoin, the most popular cryptocurrency in the world, dropped significantly after reaching a record high. This decline, which followed the Bitcoin halving, has drawn interest from the cryptocurrency community. Let's examine this development's specifics.
Bitcoin Transaction Fees Plunge: The average charge for Bitcoin transactions has dropped significantly, only one day after hitting a record high of $128 on April 20. The average charge for medium-priority transactions was $8–10 as of April 21. The reduction in prices is a welcome development for Bitcoin users who were previously burdened with exorbitant transaction fees.
Record-Breaking Fees During the Bitcoin Halving: The fourth Bitcoin halving took place on April 20th, which also corresponded with a spike in fees. The halving of block height 840,000 was a significant event in the network's history. The Bitcoin miner ViaBTC received a fee of 37.7 BTC ($2.4 million), which broke all previous records for the network's 15-year history. This charge demonstrates the volume of activity and demand that the price reduction produced.
Comparing Bitcoin to Ethereum: Due to the spike in transaction costs during the halving, Bitcoin accrued fees of $78.3 million. This sum more than 24 times above Ethereum's fees, highlighting the supremacy of Bitcoin with regard to transaction costs. Bitcoin is clearly the most popular cryptocurrency when it comes to transaction volume and costs, as seen by this comparison.
Sustained High Fees and Later Decline: Up until about block 840,200, there were higher-than-usual block fees, but they have subsequently decreased to about 1-2 BTC. This drop in costs suggests that levels will once again be more doable for Bitcoin users.
Effect on Bitcoin's Price: It's interesting to note that the price of the cryptocurrency was not significantly affected by the Bitcoin halving event. Bitcoin has increased by a meagre 1.5% after the split, hitting $64,840. Price stability indicates that the market has taken the halving's impacts into account and is making the necessary adjustments.
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