Bitcoin Transaction Fees Surge Over Tenfold

On August 22, the average transaction fee on the Bitcoin blockchain surged by 937.7% compared to the previous day, rising from $0.74 to $7.68, according to Blockchain.com.

Since July, average network fees had remained relatively stable, staying below the $2 mark. On August 18, the fee reached a historic low of $0.56.

The current increase has forced network participants to incur higher costs for transactions.

Notably, a Bitcoin developer known as Mononaut paid 0.5 BTC to consolidate 0.55 BTC.

an excellent time to consolidate, good job lads pic.twitter.com/eFRSjZHELU

— mononaut (tx/acc) (@mononautical) August 22, 2024

By August 23, the average transaction fee had dropped to $0.34, according to Mempool.

Earlier, analysts at CryptoQuant noted that demand for the leading cryptocurrency (30 DMA) fell from 496,000 BTC in April to -25,000 BTC in August.

The negative trend is partly due to a decline in net inflows into BTC-ETFs. The average daily figure (1,300 BTC) is only a fraction of March’s levels (12,500 BTC).

Back in July, the Hash Ribbons indicator signaled the end of Bitcoin miners’ capitulation, suggesting a reduction in their selling pressure on the market.

In July, analysts observed a shift among the first cryptocurrency’s miners towards accumulation, anticipating long-term asset growth.