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Bitcoin transaction fees rose more than 2,000% this year

Cryptocurrency

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The average cost of sending transactions on the Bitcoin network has increased by 2.213% since the turn of the year.

According to data from Bitinfocharts, which show the average Bitcoin transaction fees, they rose to $ 6.64 (approximately R $ 36) on May 20. That's the highest average cost since July 2018 – almost two years ago.

At the turn of the year, average rates were around $ 0.28 – marking an increase of 2,213% since January 1.

Bitcoin rates have increased by 2,213% since January 1. Image: Bitinfocharts.com

The sudden increase in the average cost of a Bitcoin transaction appeared to be due to increased activity on the network before halving.

But the reduction in the bloc's reward – from 12.5 BTC to 6.25 BTC – happened on May 12 and rates continued to rise. In fact, since halving, average transaction rates have risen more than 144%.

Rates generally increase whenever the Bitcoin blockchain has an increase in its use. Recent mempol data shows the network with a lot of pending transactions.

Bitcoin's mempool has never been so full since January 2018. Image: Blockchain.com

On May 20, mempool had 94MB of Bitcoin transactions awaiting processing. Mempool hasn't been so clogged since January 2018 – during the height of Bitcoin's biggest bull run to date.

For reference, Bitcoin blocks process 1 MB of transactions at a time. When the network is under heavy use, people are forced to pay higher transaction fees for the privilege of including their transactions in the next block.

Users can still set lower transaction fees on their wallets. However, they run the risk of being ignored by miners, who naturally seek higher payment rates.

Users are free to set their rates to zero. This was a common occurrence in the early days of Bitcoin, but today miners are more likely to ignore these transactions or to reject them altogether.

* Translated and republished with authorization from Decrypt.co


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This source of this article is portaldobitcoin.com.

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