The transaction fees on Bitcoin blockchain decreased largely after reaching the highest value. After the halving, the fees went higher at two years’s peak value. But now a rapid decrease is witnessed, and the value is closed to February’s lows.
According to BitInfoCharts, the average fee of transacting one Bitcoin stands at $1.083, which is now the lowest cost since April 28. At the end of May, the figure went to the two-year high point that was previously reported in July 2018. For example, on May 20, the value stood at $6.647, which is much higher as compared to the present fee, around $1.083. Since May 20, the transaction fee of one Bitcoin is plummeted by 83.7%.
There was a reason why the cost of Bitcoin transaction surged, and that was much anticipated halving. Before halving, Traders expected that price would shoot after the reward cut process due to halving. The extensive transactions’ activity was responsible for the upsurge in the network fees.
If compare with the start of the year, BTC transaction’s cost is still far higher though it has plummeted over 80%. At the start of January 2020, it usually took $0.287 to send one Bitcoin. In this way, the current value is 277% higher than the figure noticed on January 1.
It was noticed last month that the transaction fee surged by over 1,250% from April 11 ($0.38) until May 14 ($5.16). While in May alone, the figure jumped by more than 800%.
Usually, fees go high when there is a rush of senders on the network, and during the panic times, the majority of people pay high to get their transaction done. The jump of transaction cost in May was due to halving the panic situation created by some influencers.
Bitcoin transaction fees are much cheaper than bank transfers. On this basis, crypto supporters claim that Bitcoin should be the mainstream currency of the internet. But it is not possible as there many issues, including scalability and volatility. But the most important issue is its regulation as authorities have concerns about this due to its involvement in illegal activities.