Bitcoin average transaction fees lowest in two years at $1.04

Cointelegraph Team Cointelegraph

The average transaction fee per Bitcoin (BTC) transaction made a complete 360-degree over nearly two years to settle down at $1.039, a number which was last recorded back in June 2020.

The BTC transaction fee is the cost to transfer any amount of BTC, which is also directly proportional to the time it takes to validate and complete the transaction.

As evidenced by data provided by Blockchain.com, the average BTC transaction fee saw a steady decline from an all-time high of $62.788 in April 2021 before coming down to an eight-month average of $2 in July 2021.

Average BTC transaction fee in U.S. dollars. Source: blockchain.com

Before April 2021, Bitcoin’s average transaction fees peaked in Dec. 2017, standing at $54.638. The sudden spike in the transaction fees at the time mirrored the significant decline in the Bitcoin network hash rate. However, at the time of writing, the Bitcoin network hash rate maintains its newly attained all-time high of 248.11 EH/s.

All-time high BTC average transaction fees. Source: blockchain.com

As a result of the above combination, Bitcoin’s highly resilient network can process secure BTC transactions at lower costs. BTC’s price volatility has also shown greater stability as it oscillates between the $35,000 to $45,000 mark throughout the year, as seen below based on data from Cointelegraph Markets Pro and TradingView.

BTC market price chart 2022. Source: TradingView

With more jurisdictions ready to ease up on the Bitcoin ecosystem along with timely network updates, the resultant increase in participation will further ensure a stronger network while playing a deflationary role in Bitcoin’s price.

Quantum computing firm Multiverse Computing ran simulations around the adoption of BTC and Ether (ETH) in Canadian markets to study their viability as a mainstream payment method.

Speaking to Cointelegraph, Multiverse Computing chief technology officer Sam Mugel suggested that non-financial institutions could carry out "a high uptake of crypto in the short term" when considering digital assets for payments.

Author

Cointelegraph Team

Cointelegraph

We are privileged enough to work with the best and brightest in Bitcoin.

Aave Price Forecast: AAVE surges as capital flows return to DeFi

Aave (AAVE) extends its rally, trading above $81 on Thursday after closing above its key resistance and surging more than 10% the previous day. The bullish move is supported by improving on-chain metrics, with USDT deposits flowing back into the protocol and strengthening its lending ecosystem.

Crypto Market Overview: Bitcoin tests $60,000 as whales sell off – Aave and Jupiter show resilience

The broader cryptocurrency market remains under intense selling pressure, with Bitcoin back at $60,000 for the third time this year. On-chain data shows selling pressure from large-wallet investors, commonly referred to as whales, while total liquidations hit nearly $1 billion in 24 hours.

XRP Price Forecast: Ripple and SBI Group partner to launch RLUSD in Japan

Ripple remains under pressure, trading at $1.06 after losing nearly 5% so far this week. Ripple and SBI Group partnered to launch RLUSD stablecoin in Japan following approval from the Japan Financial Services Agency on Thursday, but the move failed to lift sentiment.

Ethereum Price Forecast: ETH could see a 30% decline if history repeats

Ethereum (ETH) has fallen toward the $1,600 level, down over 3% on Wednesday as risk-off signs persist across key onchain metrics. The ETH Realized Price Lower Band, which has historically marked bear market bottoms for the top altcoin, suggests ETH has room for further downside before staging a proper upward move.

Bitcoin: Recovery hopes fade after the Fed spoils the party

Bitcoin (BTC) is set to end the week in the red, trading near the 200-Week Simple Moving Average (SMA) at around $62,300 on Friday. Institutional selling persists, capping BTC’s recovery as spot Exchange Traded Funds (ETFs) point to a sixth consecutive week of outflows.