$128.45 Surge In Fees, $22.37 Million Reversal

Bitcoin transaction fees have been on a roller coaster lately, reaching unprecedented highs before plummeting rapidly. After Bitcoin’s fourth halving, average transaction fees soared to an astonishing $128.45, but dropped dramatically to $34.8 the next day. This fluctuation highlights the volatile nature of the cryptocurrency market.

Data from YCharts reveals a significant increase in BTC transaction fees, with total fees on April 20th reaching an astonishing $81 million, up from $7.7 million the previous day. However, on April 21, total fees fell to $22.37 million, marking a rapid reversal.

This increase in fees is closely tied to the introduction of Casey Rodarmor’s Rune Protocol, which sparked a frenzy of activity as users rushed to create Rune-based meme coins. This sudden trading demand led to a spike in fees, which quickly subsided, highlighting the dynamic and rapidly evolving landscape of cryptocurrencies like BTC.

Bitcoin fee fluctuations: from high to low

Bitcoin transaction fees experienced a dramatic recovery just one day after hitting an all-time high of $128 on average on April 20, coinciding with Bitcoin’s fourth halving. By April 21, fees for medium-priority transactions had plummeted to an average of $8 to $10, according to mempool.space.

According to a report from Crypto Fees, on the day of the halving, Bitcoin recorded a staggering $78.3 million in total fees, outperforming Ethereum by more than 24 times. The highlight is that the 840,000-high halved block contains an astonishing amount of 37.7 BTC ($2.4 million) paid to Bitcoin miner ViaBTC, making it the most historic in the network’s 15-year history. I marked the right moment.

The surge in demand on the 840,000 block was fueled by enthusiasts vying for rare Satoshis through the newly launched Runes protocol, resulting in 3,050 transactions processed on that block and users spending an average of just under $800. i paid.

Block fees were higher than usual until around block 840,200, but have stabilized around 1-2 BTC since then. Initially shielded from the impact of the subsidy halving, miners are now feeling the impact as average block fees drop below 3.125 BTC.

Nevertheless, Bitcoin maintained its lead over Ethereum in transaction fees for the sixth day in a row, with a seven-day average of $17.8 million. According to CoinGecko, the halving event had a negligible impact on Bitcoin price, with the price rising 1.5% to $64,840.

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