Bitcoin Fees Plunge After Record Average of $128 on BTC Halving Day

bitcoin (btc) network fees have plummeted just days after hitting a record daily average of $128 during the fourth bitcoin halving on April 20.

The average bitcoin fee for a medium priority transaction is between $9 and $10 as of April 22, according to mempool.space.<img decoding="async" alt="The bitcoin halving is imminent. What does that mean for investors? – Fast company” src=”https://images.fastcompany.com/image/upload/f_auto,c_fit,w_3840,q_auto/wp-cms-2/2024/04/p-1-91108036-bitcoin-halving-explainer.jpg”/><img decoding="async" src="https://images.fastcompany.com/image/upload/f_auto,c_fit,w_3840,q_auto/wp-cms-2/2024/04/p-1-91108036-bitcoin-halving-explainer.jpg” alt=”The bitcoin halving is imminent. What does that mean for investors? – Fast company”/>

bitcoin fees exceed ethereum gas costs

Driving to the reduce by half, bitcoin's network fees skyrocketed to more than 24 times those of ethereum (eth). The bitcoin network also recorded approximately $78.3 million in fees during the halving, shows crypto fees.

During this same period, 37.7 bitcoin worth $2.4 million were paid to bitcoin miner ViaBTC at a block height of 840,000. This led to block 840,000 becoming the most searched block in bitcoin's 15-year history.

Meme coins and non-fungible tokens (nfts) were responsible for most of the demand in block 840,000. Enthusiasts competed to enroll rare satoshis on the network via the Runes protocol, which is a new token standard that made its debut during the block halving.

Some 3,050 transactions were subsequently recorded on the block, raising the network's average fee to $800. These higher than normal block rates continued until approximately block number 840,200.

The crypto market could operate sideways in the coming months

While transaction fees have increased, the price of btc has remained relatively stable. In the last 24 hours, the market leader achieved bitcoin/”>gain up more than 1% to trade at $66,167.52 at 3:15 a.m. EST. This latest surge was enough to push btc's weekly performance out of the red.

<blockquote class="twitter-tweet” data-width=”550″ data-dnt=”true” wp_automatic_readability=”5.6368421052632″>

twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin It could trade sideways for 6 months as miners could sell $5 billion of btc -> Here's why: https://t.co/gLRgs8yyGg pic.twitter.com/zBLdV95MAl

— 10x Research (@10x_Research) twitter.com/10x_Research/status/1778963206691794964?ref_src=twsrc%5Etfw”>April 13, 2024

btc sideways trading could continue, with the broader market at risk of entering a “six-month pause” now that the halving has passed, says 10X Research. bitcoin Miners could liquidate up to $5 billion worth of bitcoin in the coming weeks to make up for lost revenue, he says.

While the increase in network fees during the halving delayed the event's impact on miners, fees have since decreased. As a result, miners could soon begin to “gradually” sell off their inventories to “prevent a revenue cliff from occurring,” head of research Markus Thielen said in an April 13 research note.

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