Bitcoin Fees Plummet After Record High on Halving Day
The average fees paid on Bitcoin have experienced a significant drop just one day after reaching an all-time high of $128 on April 20, the day of the fourth Bitcoin halving. According to mempool.space, as of April 21, Bitcoin fees have fallen to an average of $8-10 for medium-priority transactions.
On the day before, Bitcoin surpassed Ethereum by over 24 times, clocking $78.3 million in total fees, according to Crypto Fees. The highlight of the day was a staggering payment of 37.7 Bitcoin ($2.4 million) to Bitcoin miner ViaBTC in the Bitcoin halving block at block height 840,000. This made it the most coveted piece of digital real estate in the network’s 15-year history.
The demand at block 840,000 primarily came from memecoin and nonfungible token enthusiasts who were competing to inscribe and etch rare satoshis using the Runes protocol. This new token standard launched at the halving block. In total, 3,050 transactions were included in that block, with the average user paying just under $800.
While the higher-than-normal block fees persisted until approximately block 840,200, mempool.space reports that block fees have since fallen to around 1-2 Bitcoin.
The substantial block fee payouts to miners on halving day initially shielded them from the impact of the block subsidy halving from 6.25 Bitcoin to 3.125 Bitcoin. However, with the average block fee now well below 3.125, miners are starting to feel the effects.
Furthermore, Bitcoin has now surpassed Ethereum in terms of fees for six consecutive days between April 15-20, with its 7-day fee average currently standing at $17.8 million.
Interestingly, the Bitcoin halving event did not have a significant impact on the price of Bitcoin, which has only increased by 1.5% to $64,840 since then, according to CoinGecko. It seems that the cryptocurrency industry is continuing to attract attention and interest, with hip hop stars even showing their love for crypto.