{"id":427371,"date":"2022-04-06T13:32:27","date_gmt":"2022-04-06T10:32:27","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-transaction-fees-hit-decade-lows-heres-why\/"},"modified":"2022-04-06T13:32:27","modified_gmt":"2022-04-06T10:32:27","slug":"bitcoin-transaction-fees-hit-decade-lows-heres-why","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-transaction-fees-hit-decade-lows-heres-why\/","title":{"rendered":"# Bitcoin transaction fees hit decade lows, here&#8217;s why"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a25dae5dbe3c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a25dae5dbe3c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-transaction-fees-hit-decade-lows-heres-why\/#%E2%80%9D_Bitcoin_transaction_fees_hit_decade_lows_heres_why_%E2%80%9C\" >&#8221; Bitcoin transaction fees hit decade lows, here&#8217;s why &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Bitcoin_transaction_fees_hit_decade_lows_heres_why_%E2%80%9C\"><\/span>&#8221; Bitcoin transaction fees hit decade lows, here&#8217;s why &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>It\u2019s a great time to move Bitcoin (BTC) between wallets and exchanges. Bitcoin transaction fees have hit all-time lows in BTC, according to research by Galaxy Digital.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#bitcoin<\/a> fees are at all-time lows. the craziest thing? fall 2021 was the first bull run not accompanied by a major spike in fees.<\/p>\n<p>how is that possible? what does it mean? here&#8217;s a thread explaining the most confounding (and awesome) chart in bitcoin. (remember june 2021) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/gnWssTckX2\">pic.twitter.com\/gnWssTckX2<\/a><\/p>\n<p>\u2014 Alex Thorn (@intangiblecoins) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/intangiblecoins\/status\/1511340416263766027?ref_src=twsrc%5Etfw\">April 5, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nAs shown on the graph below, the Bitcoin mean transaction fee has plummeted to 0.00004541 Bitcoin ($2.06) in 2022, while the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>n is 0.00001292 Bitcoin ($0.59) which is the lowest of any year except 2011,\u00a0according to the report.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/a78c5c85-8114-491c-8f3c-a6a593f2dce3.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Graph to show the fees trending down since 2013. Source: Galaxy Digital<\/em><\/figcaption><\/figure>\n<p>According to Alex Thorn, head of firmwide research at Galaxy Digital, a combination of growing Segwit adoption, batching transactions, growth in the Lightning Network, a collapse in miners selling and the \u201creduced OP_Return usage\u201d have caused the drop in fees not seen for over a decade.\u00a0<\/p>\n<p>Lead on-chain analyst at Glassnode, James Check, agreed with Thorn, explaining to Cointelegraph that \u201cbatching and Segwit are certainly part of the mix,\u201d because the combination will increase the number of transactions that fit in a block, and thus increase throughput and decrease fee pressure.<\/p>\n<p>He shared the following graph to show that Segwit adoption \u201cincreased significantly at the May-July lows.\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/4e516be0-87d3-4bb1-b668-53e98b44a541.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Nonetheless, Check continues, \u201cThis is not the whole story\u2026\u201d:<\/p>\n<blockquote><p>\u201cThe number one reason I believe fees are low is we had a 50% collapse in price in May which absolutely decimated retail interest.\u201d<\/p><\/blockquote>\n<p>He suggests that \u201call three [fees, active addresses and transaction counts] collapsed after the May sell-off.\u201d\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/bf5783a7-20c6-43d3-9f31-5eaa30331778.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Fees (orange), active addresses (blue), transaction counts (purple), and BTC price (gray). Source: Glassnode.<\/em><\/figcaption><\/figure>\n<blockquote><p>&#8220;This, in my view was the likely commencing of a bear market and even with the price run-up, we saw a great many people financially burned, and thus out of the market.\u201d<\/p><\/blockquote>\n<p>Eric Yakes, the author of<em>\u00a0The 7th Property: Bitcoin and the Monetary Revolution,\u00a0<\/em>told Cointelegraph, \u201cWe\u2019re witnessing a structural change in the market dynamics and historical correlations maintain little value.\u201d\u00a0<\/p>\n<p>Regarding the future of the network, the \u201c$70M raised by lighting labs to build a stablecoin and asset protocol,\u201d is a key development for the Bitcoin protocol. He added that \u201cit\u2019s important for transaction fees to trend lower as they are the primary limitation to scaling a network in a decentralized manner.\u201d<\/p>\n<p><strong><em>Related:\u00a0Bitcoin Lightning Network growth capacity plateaus at 3,400 BTC<\/em><\/strong><\/p>\n<p>Ultimately, while transaction fees are a boon for wallet admin and opening lightning channels, it could be a sign that retail interest has dried up. For Check, \u201clook no further than ye olde Google trends to see just how popular the orange coin is right now,\u201d suggesting that \u201cthere is near zero inflow of new users.\u201d <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/4a5abbee-c553-4a3f-abd9-74da2caca1a8.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Google trends search interest for Bitcoin has trended lower since the April\/May peak.<\/em><\/figcaption><\/figure>\n<p>Yakes has the last word regarding the emergence of Bitcoin: <\/p>\n<blockquote><p>\u201cBitcoin needs the lightning network to continue its pace of growth and a thriving network of smart contract development to emerge.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-transaction-fees-hit-decade-lows-here-s-why\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Bitcoin transaction fees hit decade lows, here&#8217;s why &#8220; It\u2019s a great time to move Bitcoin (BTC) between wallets and exchanges. Bitcoin transaction fees have hit all-time lows in BTC, according to research by Galaxy Digital.\u00a0 #bitcoin fees are at all-time lows. the craziest thing? fall 2021 was the first bull run not accompanied&#8230;<\/p>\n","protected":false},"author":1,"featured_media":427372,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDQvNWU1OGFlZmMtMDEwZC00ZmIyLWJlY2EtZjZjZmRjMzRmZGIwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,81951,102407,74894,75029,76341,78261,74355,117,72927,87110],"class_list":["post-427371","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-block-size","tag-blockchain","tag-lightning-network","tag-scalability","tag-tech-analysis","tag-adoption","tag-business","tag-fees","tag-lightning"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/427371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=427371"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/427371\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/427372"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=427371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=427371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=427371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}