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Bitcoin Average Transaction Fees Increased by 300%

Bitcoin halving is about to take place in a day, i.e., on May 12 and commotion in the crypto marketplace has already started to flood.

The third bitcoin reward halving is mostly a crucial phase that is about to transpire mainly when all the countries are in a gloomy state due to the impact of Coronavirus, expect China- the country from where the pandemic occurred. 

According to the data analysis website Bitinfocharts, on April 26 the average fees of Bitcoin was $0.62, which has markedly increased by $3.19 on May 8, i.e., an approx. 300%+ jump. 

Historically, the same spike had noticed in July 2019 when the average BTC transaction fee was above $3.00.

Roger Ver aka “Bitcoin Jesus”, the early promoter of BTC and now the proponent of Bitcoin Cash (BCH), claimed that he had spent roughly $1,000 on BTC transaction fees in the past.

The sharp increase in the average transaction fees of BTC and the quivering state of the cryptocurrency market is not unusual. If we go by the records, by nature, the cryptocurrency market performs strangely from the past two reward halvings- which occurred in 2012 and 2016.

Source: Bitinfocharts

Before & After Bitcoin Halving Noise

The first Bitcoin reward halving occurred in November of 2012, which helped the top crypto asset gain its demand among a few populace. BTC, during the time, saw an increase from about $11 to nearly $1,150.

The second Bitcoin halving took place on July 9 of 2016. On the halving day, the price of BTC was almost $650, and by December 16, 2017, Bitcoin’s price had soared to nearly its ATH $20,000. This event has created another stir world-wide, and people started noticing it with a charm to gain alternative financial support due to the economic turmoil.

On July 9, 2016, just before the halving, transaction fees rose steeply in 24-hours, at an average of $0.62, which was earlier around $0.10. In Dec 2017, the average transaction fee was about $55- when BTC skyrocketed to $20,000.

Indeed, the price of Bitcoin has changed many-a-times; however, it profited its firm believers so much so that people gained in billions. One of the reasons behind the increased transaction fee is that the importance of BTC is expanding, and it is visible as traders/investors are not ready to lose any moment of serendipity. People are willing to pay more on the transaction fees to accumulate it faster than anyone else. 

The relenting price fluctuations of the major crypto-asset, institutional acceptance, and increasing chaos in the conventional financial markets are resulting in the adoption of BTC along with other crypto-assets and helping this inflow of new money to go into the mainstream population. 

Image by Gerd Altmann from Pixabay