Bitcoin Network Fees Drop Over 70% as Congestion Eases, Bringing Relief to Users

Average Transaction Fees Plummet to $2 as Bitcoin Network Sees Light at the End of the Congestion Tunnel, Boosted by Decreased BRC-20 Token Commissions

Bitcoin seems to see a light at the end of the tunnel, and it’s after weeks of congestion. The network, while not back to normal levels, has reduced network fees by more than 70% for average network commission payments.

- Advertisement -

After achieving a record high of over USD 30 in average transaction fees, data now reveals that fees, today, May 11, are around USD 2.

On average, as revealed by the Mempool.space portal, blocks are being mined with commissions hovering between 40 sat/vByte and 50 sat/vByte. Which puts commissions close to USD 2 for simple transactions waiting to be confirmed within the first 10 minutes.

The commission payout can vary depending on the size of the transaction. If a transaction has more inputs and outputs, more signatures (multi-signatures) or contains an NFT, its weight increases, so the total commission value may be higher than average in these cases.

Exceptionally, average commissions are approaching levels of early May, when they were trading at USD 6.99. The first stage of the BRC-20 boom, the main cause of the current congestion, occurred last week. CryptoNews reported how, in Bitcoin, 6 out of 10 transactions correspond to BRC-20 tokens.

- Advertisement -

While commissions are starting to drop, there are still more than 300 transactions to be confirmed, reflecting high demand.

Another important point is that, although the amount of BRC-20 issued daily has not decreased this last week, the commissions that users pay for them have decreased considerably, with a reduction of more than 60%. This behavior may be influencing the current drop in Bitcoin commissions.

READ NEXT

Previous Articles:

- Advertisement -

Latest News

Gate Launches Ethereum-Compatible Layer 2, Revamps GT Token

Gate has introduced Gate Layer, a new Layer 2 blockchain to raise transaction speeds...

FalconX Launches First Forward Rate Contracts for Ethereum Staking

FalconX completed the first forward rate agreements based on the Treehouse Ethereum Staking Rate. The...

Oracle to Operate TikTok US Algorithm as Takeover Deal Nears Completion

A potential agreement is nearing that would move control of TikTok’s U.S. operations to...

Bitcoin Options Expiry Favors Bulls if $112K Holds Amid Uncertainty

About $22.6 billion in Bitcoin options contracts are set to expire on Friday, with...

BitMine Buys $84M in Ethereum, Analysts See ETH Hitting $12K+

Ethereum holds above $4,100 following an $84 million purchase by BitMine Immersion.The company now...
- Advertisement -

Must Read

How to Buy VPN With Bitcoin Using CyberGhost VPN

In this step-by-step guide, you will learn how to purchase a VPN (Virtual Private Network) subscription using Bitcoin, a popular cryptocurrency, and CyberGhost VPN,...