Onchain Fees for Bitcoin Drop to Six-Month Low

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Onchain Fees for Bitcoin Drop to Six-Month Low

Bitcoin transaction fees have reached their lowest point since early November 2023, roughly six months ago. The average fee is now about $2.77 per transaction, with low-priority to high-priority transfers costing between $0.38 and $0.95 per transaction on May 24.

Bitcoin Transfer Fees Reach Lows Not Seen Since November 2023

Transferring BTC onchain is now more affordable than it has been all year or since November 2023, as indicated by data from bitinfocharts.com. Currently, the average transaction fee stands at 0.000041 BTC or $2.77 per transfer. A median-sized transaction on the Bitcoin blockchain costs 0.00002 BTC or $1.34 per transaction.

According to mempool.space metrics, transfers are paying between 4 to 10 satoshis per virtual byte (sat/vB). This translates to low-priority to high-priority transactions ranging from $0.38 to $0.95. Statistics reveal that between blocks 844,660 and 844,828, or approximately 168 blocks, bitcoin miners earned an average of 3.3022 BTC from block subsidies and onchain fees.

Although onchain fees are currently lower, unconfirmed transactions in the mempool exceed 170,000. Johoe’s Bitcoin mempool statistics indicate that there have been over 150,000 unconfirmed transactions in queue since the second week of April 2024. The last time miners nearly cleared the mempool was in October 2023, when fees were similarly low.

Compared to Ethereum, the second largest blockchain network by market capitalization, Bitcoin’s onchain fees have been lower. Currently, the average onchain fee on the Ethereum network is 0.0015 ETH or $5.89 per transaction. The median fee stands at 0.00056 ETH or $2.15 per transaction. It is important to note that this metric applies to simply transferring ether, not to interacting with a smart contract or transferring an ERC20 token.

What do you think about Bitcoin’s network fees dropping to a six-month low? Share your thoughts and opinions about this subject in the comments section below.

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