The much-anticipated Bitcoin halving is set to happen in less than a day with the development now causing a hike in the amount charged as transaction fee. This narrative falls in line with traders on crypto exchanges willing to pay more to get their transactions done in time and the increase in the number of unconfirmed transactions.
Bitcoin Charges Above $3 For Transactions
The Bitcoin halving that is scheduled to happen in less than a day has seen the majority of the exchange on the Bitcoin network push up their transaction charges. Reportedly, Bitinfocharts said that the average fee charged for transactions as at May 8 was $3.19, a 350% rise from the previous cost of $0.6 on May 4. The last time this occurred was as far back as July when the transaction fees rose as high as $3.4.
Bitcoin network has witnessed a massive influx of transactions on the back of the recent volatility experienced in the digital assets market in previous weeks. Around December 2017, the price of Bitcoin (BTC) recorded an all-time high when it rose as high as $20,000 with the transaction charge pegged at $55.
What Are The Factors That Influence Transaction Charge Surge?
A surge in transactions happens as a result of customers on a particular exchange willing to pay more so the exchange will give their transactions utmost priority. This move helps them reduce the time taken for a transaction to be approved and is usually tied to the population on the exchange.
Reports say the influx of transactions in the Bitcoin network has been tied to the halving event that is scheduled to happen in less than 24 hours. If the halving goes through as planned, miners will get half of the amount usually charged for approving a transaction. Notably, the network has witnessed a vast amount of unconfirmed transactions in recent days.
As reported in the chart above, the total number of transactions that have not been approved increased significantly throughout the previous week. It is interesting to note that analysts and miners alike would be anxious to see the outcome of the third Bitcoin halving and the effects it would have on the transaction fee. With some analysts saying the price of the digital asset would fall because it is priced in, others have been quick to say that a surge is expected of it follows in the pattern that the previous halvings did.