Wednesday, May 29, 2024

Bitcoin transaction fees briefly quadrupled, they nevertheless remain extremely low.

If you have some Bitcoin to send or wallets you want to reorganize, it is not that expensive. According to a report published by Arcane Research, transaction fees for Bitcoin trades have remained at their lowest as of July 2021. There is no indication that the fees will rise either. Last week, there was a slight bump in the fees last week and it showed up as a jump at the end of a graph.

The average of the transaction fees over a week amounted to $691,000, which was double since Tuesday last. Even so, the doubling of these fees is considered insignificant as transaction fees are still in the low range. Miners have been churning through the transactions mempool over the last two days. They secured the network and are working to keep transactions affordable.

Eric Yakes wrote a book on Bitcoin and said in an interview with Cointelegraph that there are three reasons for transaction fees being so low. These are the Layer 2 infrastructure being used by BTC, redistribution of hash rates and segwit adoption. All of this along with the adoption of Lightning, an instant payment network has helped tremendously with keeping costs low.

Cointelegraph has tracked and reported on the rising numbers of exchanges which had started to use segwit over 2021. According to Yakes, network difficulties have reached bottom and resulted in the rise of ATHs. This happened due to the Chinese ban and a major hash rate redistribution. This, combined with the rising numbers of segwit transactions helped with clearing transactions fast. This led to a drop in transaction prices. All of these developments have had a positive impact on BTC’s ability to scale and offering affordable ways to transact.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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