Bitcoin Hits $109K ATH as Network Decentralization, Fees Fall

Bitcoin Hits All-Time High as Network Decentralization and Fees Decline

  • Bitcoin reached a new all-time high above $109,400 in New York trading.
  • Key network health metrics, such as decentralization and transaction fees, are near record lows.
  • Four mining pools now process the majority of Bitcoin blocks, raising centralization concerns.
  • Average transaction fees have fallen below $1, and miner revenue relies mainly on block subsidies.
  • Large and new treasury firms have increased Bitcoin accumulation, fueling price growth.

Bitcoin’s price hit an all-time high above $109,400 during mid-morning trading in New York, as investors rallied behind renewed corporate interest in the asset.

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Network data shows several key metrics are trending downward, despite the record price. The average transaction confirmation time has stayed below 50 minutes this month, with some days seeing confirmations in under 20 minutes. This figure helps measure congestion on the network and the demand for space in each block.

Decentralization remains an issue. Over the past year, only four mining pools have accounted for most blocks mined on Bitcoin’s network, according to blockchain.com. This concentration means a small number of groups are responsible for creating most block templates. Although miners can choose different pools, the construction of new blocks remains largely centralized.

Average transaction fees are also unusually low. Users have paid as little as two satoshis per virtual byte (sats/vB) for low-priority transactions, and the cost has stayed below $1 on several days this month. In comparison, the network saw peak fees over $127 when demand for block space was higher. Current fee levels, based on data from mempool.space, are near multi-year lows.

Miners now collect less than 1% of transaction volume as revenue, as shown by blockchain.com. This means they still depend heavily on the block subsidy, rather than on user-paid transaction fees, to generate profits.

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The total number of unconfirmed transactions in Bitcoin’s mempool is now at a one-year low, based on blockchain.com data.

Recent price growth is fueled mainly by large-scale purchases from both established and new treasury companies. Copycat strategies have been seen from firms like Twenty One by Tether, Nakamoto by BTC Inc., Strive by Vivek Ramaswamy, Méliuz by Israel Salmen, and Nuvve by Gregory Poilasne, who have all announced plans to acquire Bitcoin. Established corporations including MicroStrategy, MARA, and MetaPlanet continue to increase their Bitcoin holdings using leverage.

Although the price is at a record high, the broader health and decentralization of the Bitcoin network show mixed signs, with several underlying metrics at or near historic lows.

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