Bitcoin transaction fees have witnessed a surge of about 350% in a month, with Ethereum fees declining drastically.
It is no longer news that Bitcoin transaction fees are rapidly rising as the fees have continued an upward move in the last 30 days ending on October 22.
The latest transaction fees surge came off the back of the leading digital asset’s bullish run. Growing interest and participation by institutional investors have been noted as factors responsible for this, with the ripple effect reflecting on the transaction fees.
Bitcoin records transaction fees surge in the last 30 days
According to the data published on BitinfoCharts, the average cost of sending bitcoin on the blockchain is now $5.75, going up about $1.8 in the space of five days. With Bitcoin registering the 2020 high price of $13,000 on October 22, the fees surged to around $6.36.
Thirty days earlier, on September 20, the average amount to make a bitcoin transaction on the blockchain was $1.39. In the space of 30 days, transaction fees recorded a massive surge of about 358%.
Another reason for the rise in the transaction fees is that investors and traders are willing to pay a higher fee so their transactions can be given a high priority and be processed ahead of others.
Whenever Bitcoin’s price makes a bullish run, both large-scale and small scale investors rush to take advantage of the price increase. This one move triggers the fear of missing out (FOMO), and the bitcoin blockchain always gets congested.
With this, miners have loads of transactions on their hands to confirm; hence the cost of doing so skyrockets on investors and traders. With this in mind, traders, however, the go-ahead to increase their transaction fees so their transactions can be given priority over others.
Ethereum transaction fees undergo a 75% reduction
As of yesterday, the price to complete a transaction on the Bitcoin blockchain has dropped to about $3.98. One exciting thing that happened throughout the crypto market rally was that as transaction fees on the Bitcoin Cash blockchain rose, transaction fees on the Etherem blockchain fell drastically.
As it has always been, Bitcoin Cash transaction fees remain one of the cheapest costs, even with a slight increase. Data from bitcoinfees.cash on October 25 shows that the next block fee on the BCH network is $0.0014, with the current median fee being $0.0013 per transaction.
As it stands now, it is very much expensive to make transactions in bitcoin compared to that of bitcoin cash, according to data from Coin Dance. Meanwhile, the average transaction fee on the Ethereum blockchain slumped more than 75% to $0.92 from its initial price of $3.49.
The fall in the Ethereum fees can be attributed to the decline experienced in the decentralized finance sector in the past few weeks. The blockchain witnessed transaction fees surge around July after the projects in the space experienced massive surges.
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