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.

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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.

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.

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