Bitcoin is currently facing its most protracted congestion period to date, with Mempool data indicating a staggering backlog of over 465k pending transactions. This predicament highlights the network’s battle to accommodate an ever-growing volume of transactions, resulting in surging transaction fees and frustratingly delayed confirmation times.
Mempool plays the role of a temporary repository for all Bitcoin transactions awaiting validation by miners before they can be integrated into the subsequent blockchain block. Each node within the Bitcoin network stores this transient Mempool. Transactions residing in the Mempool are periodically purged each time a new block is appended to the blockchain.
As of the time of authoring this article, Mempool data records a remarkable 466,861 transactions in line for confirmation. Nevertheless, only transactions meeting the minimal transaction fee requirement are processed and confirmed from the Mempool. Transactions with lower fees must patiently await several blocks before they get their turn for processing and confirmation.
During times of network congestion, miners typically give precedence to processing transactions boasting higher fees, relegating low-fee transactions to a state of limbo. Consequently, users seeking rapid transaction confirmations are compelled to dig deeper into their pockets and pay elevated fees, propelling the average transaction cost on the Bitcoin network skyward.
Statistics from bitinfocharts also reveal that the average Bitcoin transaction fee currently hovers at $2.94, marking the highest point since July 2023. In comparison, a year ago on the same day, the fee stood at a mere $1.021, translating into an approximate 188% surge in the average Bitcoin transaction fee over the past year.
This isn’t Bitcoin’s maiden encounter with congestion woes. In May 2023, the network grappled with a similar “overload” scenario, propelling the average transaction fee to dizzying heights of over $19, with an apex of $31.1 reached on May 8, 2023.
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