Bitcoin Transaction Fees Drop to Single Digits Following Record High of $128 on Halving Day

Bitcoin Transaction Fees Experience Significant Drop

Bitcoin transaction fees saw a notable decrease just one day after hitting an all-time high average of $128 on April 20, coinciding with the fourth Bitcoin halving.

Average Fees Drop to $8-10

On April 21, the average fees for medium-priority transactions on the Bitcoin network fell to a range of $8-10, according to data from mempool.space.

Record Fee Paid to Miners

The Bitcoin halving block at block height 840,000 included a remarkable 37.7 Bitcoin (equivalent to $2.4 million) paid to Bitcoin miner ViaBTC, marking it as the most sought-after piece of digital real estate in the network’s history.

Enthusiasts Drive Demand

The demand for block 840,000 was largely fueled by enthusiasts of memecoins and non-fungible tokens (NFTs) competing to inscribe and etch rare satoshis using the Runes protocol, a newly launched token standard that debuted at the halving block.

Fee Trends Post-Halving

Following the halving, fees have decreased to around 1-2 Bitcoin per block, after peaking at an average of $800 per user in block 840,000.

Bitcoin Price and Halving Impact

Despite the halving event, Bitcoin’s price has risen by 1.5% to $64,840, with further gains recorded in the days following.

Long-Term Price Outlook

Analysts anticipate potential price fluctuations post-halving, but the long-term consensus remains bullish, with historical data showing significant price surges in the year following previous halving events.