Bitcoin and Ethereum transaction fees sink 95% from all-time highs
While the price of Bitcoin and Ethereum fluctuated wildly this week due to the sudden and unexpected rise in transaction fees, a new study from a financial technology company called Chainalysis suggests that the cost of sending money from one person to another using the technology has sunk 95% from all-time highs.
In a single day, the average Bitcoin transaction fee dropped from $26.90 to $0.82, and the average Ethereum transaction cost fell from $2.63 to $0.05, according to a recent report from blockchain data firm Chainalysis. For comparison, the average national transaction fee for a card purchase was $0.82 at the end of April, while the average credit card service fee was $0.28, according to the Bankrate.com website.
The year 2017 was a big one for Bitcoin. The cryptocurrency skyrocketed from $1,000 at the start of the year to a peak of $19,511 in December, according to Coinbase. It then crashed as low as $3,851 by the beginning of January. But if you look at Bitcoin and Ethereum transaction fees, you’ll find that they sunk 95% from their all-time highs, according to BitInfoCharts.com.. Read more about ethereum previous all-time high and let us know what you think.
The cost of using the Bitcoin and Ethereum blockchains is falling rapidly, as evidenced by the 93-95% drop in average transaction fees in recent months. A fee is paid to miners who process transactions on a typical proof-of-work blockchain. The amount of the commission depends on the size of the transaction in bytes and the number of transactions the coin has made in the past (since these have to be verified with each movement of the coin). Supply and demand of space also dictate transaction costs, as the blockchain has limited capacity. In 2021, both Bitcoin and Ethereum saw transaction values reach historic highs in April and May, coinciding with rising coin values and price spikes. The 24th. In April, the average bitcoin transaction fee reached $62.77, a figure that surpassed the all-time high of $55 reached in December 2017 and lasted more than three years. The 6th. June prices were down to $4.38. This is a 93% drop and brings average BTC fees to levels not seen since December 2020, before the market starts pumping in 2021. The same general trend was observed on Ethereum, where the average transaction fee was over 12 The month of May stood at $69.92. This is a new high for Ethereum’s utility value, no doubt fueled in part by the flurry of activity that accompanied the launch of decentralized finance and the UniSwap exchange, which has long been the largest consumer of funds on Ethereum. The 6th. In June, the average commission on Ethereum was just $3.44, a level not seen since the first day of January 2021, a drop of 95%. Costs on both blockchains tend to spike when the price of a coin rises sharply or when a new application emerges that increases network usage. Historical increase in transaction costs. Source: Bitinfocharts.com As Cointelegraph previously reported, the number of transactions for Bitcoin and Ethereum is also falling. Between January and June, the daily number of bitcoin transactions dropped from around 400,000 to just 175,000. The number of daily Ethereum transactions also fell from 1.6 million to 1 million between May and June alone, a drop of 37.5%.I’ve been covering crypto lately and one thing that’s been getting me puzzled is the recent price action of Bitcoin and Ethereum. Since the beginning of October, Bitcoin transaction fees have sunk 95% from their all-time highs. Some people think this is because the Bitcoin network is congested, which it is, but I’m not convinced it is the only factor at play. My hunch is that the transaction fees have been driven down by a confluence of events, and that it isn’t just the Bitcoin network that has been clogged.. Read more about litecoin transaction fee 2021 and let us know what you think.