TL; DR Breakdown
- Bitcoin sees lowest transaction fees in two years
- Transaction fees were at an all-time high in 2020
- More traders are entering the network
Bitcoin has made tremendous progress over the years in terms of its price swing, with the asset seeing a strong bullish trend across last year. However, that didn’t come without only difficulties related to several issues with transaction fees at the top of the list. In a recent statement by blockchain.com, the average transaction fee of BTC has recorded a sharp drop to linger around $1.03. Notably, this number was last seen around June 2020 while the digital asset was trying to make a surge following a sell-off in March.
Fees were at ATH in 2020
Fees are the cost that traders must pay to the networks for carrying out sending activities and, in this case, related to Bitcoin. The transaction fees in some cases of assets like Bitcoin determine how fast or slow transactions will be validated and approved. In the on-chain details presented by the company, the transaction costs for Bitcoin saw a massive rise to reach an all-time high figure of $62.7 in 2020.
In July, the digital asset transaction costs saw a turnaround to stay at an average price of $2. Before the figure was registered in April, the transactions costs stayed at $54 around December 2017. One of the reasons for the massive decline in the transaction fees has been tied to the steady decline in the hashrate of the Bitcoin network. Notably, the tokens hashrate is presently at a high of 248 EH/s.
More traders are entering the Bitcoin network
With the combination of the metrics mentioned above, the Bitcoin network has allowed traders to carry out transactions at low costs. The token has also stabilized slightly, following a yearly trade between the $35,000 and $40,000 mark trade. This figure can be confirmed on TradingView. With more parties hoping to enter the network, we could witness an update to the network.
This would help traders carry out massive amounts of transactions with little cost. Some investments also consider the feasibility of adopting digital assets as payment methods. In a recent statement, one of the top executives of Multiverses computing mentioned that firms that are not in the financial market could use crypto for payments in the short term.