Bitcoin transaction fees fall to new lows

Cost of sending leading crypto falls up to 91 per cent in under four weeks

Network                                 

Having surged following its third halving, Bitcoin’s transaction fees fell to new lows over the weekend.

According to the digital asset statistics outlet, Bitinfocharts, the cost of sending the world’s leading cryptocurrency now averages around $0.711.

This marked a drop from mid-May when Bitcoin’s transaction cost jumped at $6.65 (€5.82, £5.22), its highest level in almost two years. At this peak, the average cost of sending transactions on the Bitcoin network had increased by over 2,000 per cent since January 1.

In the less than four weeks since May 20 however, the cost of BTC transactions has fallen by up to 91 per cent.

Increased usage and trading volume generally leads to an increase in a crypto’s transaction fee, as miners are able to demand higher sums to facilitate payments. An act of deflation at a time when the money supply around the world was actively being inflated to cope with the Covid-19 crisis, the halving which occurred in May attracted significant interest.

The onset of a global recession has accelerated interest in cryptocurrencies throughout 2020, with adoption in India massively increasing after the nation’s supreme court threw out the central bank’s ban on crypto trading.

While Bitcoin transaction fees are unlikely to break the all-time high reached in December 2017 of $55, with another 1.3 billion people better able to participate in the burgeoning emerging market, they could be set to pick up from their current lows.

By mid-morning Monday trading (UTC) Bitcoin traded down 3.1 per cent at $9,101.

FURTHER READING: Indian crypto trading volume surges

FURTHER READING: Russian Ministry of Economic Development urges lawmakers to reconsider proposed crypto ban

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with crypto or fiat
iMac Image