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Bitcoin transaction fees have significantly lowered post-halving after spiking up to $170 for a transaction; Bitcoin clocked $78.3 million in total fee.
The fees for Bitcoin transactions increased sharply after the halving, reaching $146 for a medium-priority transaction and $170 for a high-priority transaction. However, the average fees for Bitcoin transactions have dropped significantly post-halving.
The Runes NFT collection was supposed to be the tool that maintained fee revenue post-halving, but the floor price for this collection has also dropped. On the day of the halving, block fees surged, more than making up for the halved block subsidy miners were hit with. However, this is no longer the case.
The Drop of Transaction Fees
A day after reaching a record average of $128 on April 20, the average fees paid on Bitcoin have sharply fallen. Currently, medium-priority transactions on Bitcoin cost between $8 and $10, according to mempool.space. According to Crypto Fees, Bitcoin clocked $78.3 million in total fees, beating Ethereum by over 24 times.
The halving block at block height 840k included a staggering 37.7 BTC ($2.4 million) paid to Bitcoin miner ViaBTC. That ended up making it the most sought-after piece of digital real estate in the network’s history.
The demand at block 840k came from meme coin and nonfungible token enthusiasts competing to inscribe and etch rare satoshis via the Runes protocol. It is a new token standard that launched at the halving block.
The average user paid a little under $800 for the 3,050 transactions included in block 840,000. While the higher-than-normal block fees continued until about block 840,200, they have since fallen to around 1–2 BTC.
The higher-than-normal block fees initially meant that miners were not impacted by the block subsidy, halving from 6.25 BTC to 3.125 BTC. However, this is no longer the case. Fees on Bitcoin have now topped Ethereum for six consecutive days between April 15 and 20, with its seven-day fee average at $17.8 million.
Halving’s Impact on Bitcoin’s price
The halving event did not have a significant impact on Bitcoin’s price, which is up 1.5% since then to $64,840, according to CoinGecko.
The hashprice index is a metric created by Luxor to quantify how much a miner can expect to earn from a specific quantity of hashrate. This index has dropped from $182.98 per hash/day to $81, a level below where it was at pre-halving.
Conclusion
Amidst the current ups and downs in the market, the Bitcoin transaction price post-halving showed significant volatility. Bitcoin transaction fees increased sharply after the halving but have since dropped significantly. Medium-priority transactions cost between $8 and $10. Bitcoin earned $78.3 million in total fees, beating Ethereum over 24 times. The high demand at block 840k came from meme coin and nonfungible token enthusiasts competing to etch rare satoshis via the Runes protocol.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
