Fees on the bitcoin network have reached their lowest in seven years, with the median cost of sending BTC currently standing at $0.11. While there are several reasons why BTC fees are low, one of them is obvious: less people are using the network. The number of daily transactions has dropped sharply since last year, and has declined further in the past month.
It is no secret that the number of on-chain bitcoin transactions, along with those of other blockchains, has dropped significantly since late 2017. This mirrors the decline in the valuation of bitcoin and most other digital assets during this timeframe. On December 14, almost half a million BTC transactions were recorded in a single day. By February, this figure was averaging below 200,000 a day. On April 24, the number peaked at 254,000, but has since declined, reaching a low of 158,000 on May 26, according to Bitinfocharts.com.
In early April, the median BTC transaction fee dropped to under 10 satoshis per byte before rising to almost 40 sats by the end of the month. As of May 26 2018, the median fee was back below 10 sats/byte once more. Median fees are taken as being a more useful metric than looking at average fees, for as Coinmetrics.io explains, “Median figures are generally much more informative for data like fees or transaction value since the data is normally extremely (positively) skewed”.
I guess everyone is HODL’ing during these turbulent times!
What do you think, will fees stay low? Let us know in the comments,