Bitcoin’s Average Transaction Fees Plummet After Setting a New High on Halving Day, Total Daily Transaction Fees Exceed Ethereum for 7 Consecutive Days

Bitcoin's Average Transaction Fees Plummet After Setting a New High on Halving Day, Total Daily Transaction Fees Exceed Ethereum for 7 Consecutive Days

Bitcoin's Average Transaction Fees Plummet After Setting a New High on Halving Day, Total Daily Transaction Fees Exceed Ethereum for 7 Consecutive Days

The average transaction fee of the Bitcoin network reached a historical high of $128 on the day of the fourth halving, but according to data from BitInfoCharts, it sharply declined to $34.8 in just one day.

Source: BitInfoCharts

Bitcoin reached block height 840,000 at 8 am Taiwan time on April 20, officially completing the fourth halving in history. The mining reward per block was reduced from 6.25 BTC to 3.125 BTC. According to data from mempool.space, the fourth halving block was mined by ViaBTC, with a total transaction fee of 37.626 BTC (approximately $2.4 million).

The record-breaking fees were attributed to the frenzy of Degen participants to inscribe and etch rare satoshis on the halving block, with much of the activity coming from the Runes Protocol created by Casey Rodmarmor, the founder of Bitcoin Ordinals. This protocol went live simultaneously with the Bitcoin halving.

Data from Crypto Fees shows that on April 20 alone, the total transaction fees for Bitcoin reached $78.3 million, more than 24 times that of Ethereum. The fourth halving block contained 3050 transactions, which means that on average, each user paid nearly $800.

Source: Crypto Fees

Data from mempool.space shows that the above-normal block fees continued until around block height 840,200, and then decreased to approximately 1 to 2 BTC. In addition, from April 15 to 21, the total transaction fees of Bitcoin have exceeded Ethereum for six consecutive days. As of April 21, the 7-day average fee for Bitcoin is $20.25 million.

Data source.