Bitcoin’s average transaction fees dropped by nearly 60% last week, as the number of pending queue transactions on the network decreased.
The cost of making a transaction via the Bitcoin blockchain dropped to about $ 2.61 on May 28, while the previous six days cost more than $ 6.28, according to Bitinfocharts.
As a percentage of revenue for BTC miners, fees also dropped from 21% to less than 10% on May 20. Transaction costs have skyrocketed by more than 220% since halving Bitcoin on May 11.
The sharp drop in fees was due to the normal transaction activity, which reduced the network load, as indicated by the Bitcoin memory pool, known as the mempool. The memory pool includes all transactions pending confirmation by the Bitcoin network.
Data show that the number of unconfirmed transactions in mempool has dropped by more than 70% in the past seven days, resulting in lower costs.
A higher number of pending transactions in mempools has the opposite effect on transaction costs, as is the case during and immediately after halving.
After that, the demand for processing transactions on the BTC network far exceeded the miner’s supply, forcing higher costs when people paid more to be processed faster.
Fees are also determined by other factors such as the size of the transaction, the difficulty of mining, as well as the actual number of transactions passing through the network – all of which continue to decrease.
The total number of Bitcoin transactions has dropped by 49% during the week to May 28, from 298,000 transactions to about 151,000.
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