The Bitcoin network is currently facing a surge in network fees due to 332,000 unconfirmed transactions as of 12:05 pm Eastern Time on June 7th.
At that time, network fees had reached 514 sats for high-priority transactions and 513 sats for low-priority transactions, peaking at around 520 sats per transaction earlier in the day. This translates to approximately $50-$52 in fees per transaction in United States dollars. However, priority fees have since decreased to around $46 per transaction.
According to blockchain reporter Colin Wu, the large number of unconfirmed transactions is believed to be linked to centralized exchange OKX collecting and organizing wallets, although this has not been confirmed as of now.
Post-halving economics and the challenges faced by Bitcoin miners have become more prominent in recent times. The reduction of the block reward from 6.25 Bitcoin (BTC) to 3.125 BTC at the end of April has had a significant impact on miner profits.
Bitfarms reported a 42% decrease in mining revenue for the month of May, the first full month following the latest halving event. The company disclosed that it earned 156 BTC in May compared to 269 BTC in April. Bitfarms also mentioned that its facility in Argentina experienced unusually low temperatures in May, leading to the shutdown of the Rio Cuarto facility for eight days and contributing to a decrease in the total amount of Bitcoin mined.
In the U.S., Bitcoin miners have spent a total of $2.7 billion on electricity since the beginning of 2024, despite the increasing computing difficulty and lower rewards. Analyst Paul Hoffman stated that Bitcoin mining in the U.S. has consumed a massive 20,822.62 GWh of electric power since the start of 2024, which could power 1.5% of U.S. households for a year.
In April, the average cost to mine a single Bitcoin was $52,000. Following the halving event, this cost has more than doubled to an average of $110,000 per Bitcoin.