Bitcoin fees drop 60% as transaction count drops
Bitcoin (BTC) average transaction fees fell nearly 60% in the past week, as the number of queued transactions to be processed online decreased.
According to data from Bitinfocharts, the cost of conducting a transaction through the Bitcoin blockchain fell to around $ 2.61 on May 28, up from just over $ 6.28 six days earlier.
As a percentage of revenue for BTC miners, rates have also dropped to just under 10% from 21% on May 20.
Transaction costs had soared more than 220% since the bitcoin supply cutoff scheduled for May 11, culminating a recovery that started two weeks before the event.
The sharp drop in fees is due to transaction activity returning to normal, which helps decongest the network, as represented by Bitcoin’s memory pool, called mempool. The memory set consists of all the transactions waiting to be confirmed by the Bitcoin network.
Data shows that the number of unconfirmed transactions on mempool has decreased by more than 70% in the past seven days, leading to a decrease in fees.
A larger number of transactions waiting to be confirmed in the mempool causes the opposite effect on transaction costs, as was the case during and immediately after halving.
Then, the demand for processing transactions on the BTC network outstripped the supply of miners, forcing them to charge higher fees as people paid more for faster settlements.
Rates are also determined by other factors such as the size of the transaction, the difficulty of extraction, and the actual number of transactions that pass through the network, all of which have continued to decline.
According to Bitinfocharts figures, the total number of Bitcoin transactions decreased by 49% during the week to May 28, from 298,000 to 151,000 transactions.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.