May 31, 2024

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Bitcoin transaction fees crash hard after bizarre halving spike

Bitcoin transaction fees crash hard after bizarre halving spike

At the end of last week, transaction costs on the Bitcoin (BTC) network rose significantly. After the fourth halving happened, as a Bitcoin user, you had to dig deep into your pockets to complete the transaction. The meteoric rise has now been followed by an equally rapid decline. The fees paid are now just another reward for miners.

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Average BTC fees are falling rapidly

The long-awaited Bitcoin halving was successfully carried out on the night of Friday to Saturday. At transaction block 840,000, the time has come; Miner rewards have been halved from 6.25 BTC to 3.125 BTC. From that moment on, the Runes Protocol, a new token standard for the Bitcoin network, was also launched.

Runes offer a more efficient and powerful alternative to launching tokens on the Bitcoin blockchain than Ordinals, which launched in January 2023. It was clear that there was a huge demand from the Bitcoin community to get in right away. In the halving block, a disgusting fee of 37.7 bitcoins was paid, equivalent to about $2.4 million. usually Block reward The lion's share of miners' sales.

Last Saturday the average transaction costs were one Score high From $128. Over the course of that entire day, a total of $78.3 million was spent on transaction fees, which is more than 24 times more than Ethereum (ETH). according to Encryption fees.

Outside Dates shows that transaction costs have decreased rapidly. On average, you now pay just under ten dollars to send value across the Bitcoin blockchain.

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Bitcoin miners enter

For Bitcoin miners, the hype surrounding the Runes protocol of course represents a financial windfall. The halving doubles the cost of mining one Bitcoin. Thanks to massive network congestion, they were not initially negatively affected by the underlying event.

Higher than normal block charges continued until approximately block 840,200. Since then, miners have again received an average of 1-2 BTC plus a reward of 3,125 BTC.

If interest in runes continues, this will provide more miners with the opportunity to keep their heads above water. It stands to reason that those with high operational costs will be most affected by the block reward being halved.

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