Bitcoin Fees Surge to $3.54, Up 92% in 4 Days, Amid High Demand and Limited Blockchain Capacity
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The Bitcoin blockchain has gained immense popularity as a network for sending and receiving Bitcoin. However, due to its widespread usage, the cost of sending transactions has soared, making it quite expensive. On average, it now costs around $3.54 to send Bitcoin, which can be a significant amount for many users.
Bitcoin’s Average Transfer Fee Surged 92% in 4 Days With More Than 330,000 Unconfirmed Transactions in the Backlog https://t.co/uF452vhJRq pic.twitter.com/7rJ291pKgD
— ocelot (@catocelot) June 22, 2023
It is worth noting that fees on the Bitcoin network have experienced a significant increase of 92% since June 18th, when they were at $1.84. This surge in fees can be attributed to the limited capacity of the blockchain, which can be likened to a congested road.
As more people attempt to use the network simultaneously, there is insufficient space to accommodate everyone’s transactions, resulting in high fees. Consequently, utilizing the Bitcoin network has become more expensive.
Recent Surge in Bitcoin Fees: 92% Increase in 4 Days
As previously mentioned, Bitcoin fees have recently surged, increasing by 92% in the past four days, according to data from bitinfocharts.com. These fees have remained above $1 for approximately 60 days since April 23, with a peak of $31 per transaction on May 8, the highest for the year.
It is noteworthy that median-sized transfer fees have also risen. On June 22, the median fee was $1.60 per transfer, equivalent to 0.000053 BTC, showing a surge of over 130% in just four days from the low fee of $0.694 per transaction on June 18.
Furthermore, mempool.space, an archive of Bitcoin transactions, indicates a high number of unconfirmed transactions, with approximately 339,936 pending as of Thursday afternoon. This backlog of transactions waiting to be processed contributes to the congestion on the Bitcoin network.
The Bitcoin network currently offers different fee levels based on transaction priority, ranging from $1.59 for high-priority transactions to $0.50 for no-priority transactions. These fees determine the speed at which transactions are processed.
In contrast, the Lightning Network, a faster and more cost-effective method for Bitcoin transactions, has experienced a slight increase in capacity. Within three days, the network’s capacity grew by 0.33% from 5,408.88 BTC to 5,427.05 BTC, providing users with an alternative for quicker and more affordable transactions.
As a result, the high transaction fees and congestion on the Bitcoin network may impact the price of Bitcoin, potentially leading to decreased demand as a medium of exchange and influencing its overall market perception.
