On April 21, Bitcoin network fees touched an all-time high according to a number of transaction fee aggregators. The average bitcoin transaction fee is approximately $59.88 and the median fee is around $26.44 USD per transfer.
Bitcoin Fees Climb Sky High After the Hashrate Plummeted
The cost to send a bitcoin (BTC) transaction has never been higher in terms of average fees. In terms of the median value, charts show median fees are nearing an all-time high (ATH) as well, but are not quite there yet. The average fee rate touched an ATH of around $59.88 per transaction on Tuesday evening (EST). Blockchain.com’s “mempool transaction count,” which shows the total number of unconfirmed transactions in the mempool, is around 114,000 transactions waiting in the backlog.
BTC fees have been growing higher as the price per coin started swelling, but network fees really started accelerating northbound after the hashrate dropped and market carnage that took place this past weekend.
At the time of publication, the overall hashrate is 133.14 exahash per second (EH/s) which is 38% lower than the ATH recorded on April 15, 2021, at 218 EH/s. When a significant fraction of hashrate drops the miners’ processing blocks slow down, which means the mempool or transaction queue starts to climb.
Because block space is only 1MB and developers have not addressed the issue besides relying on offchain and sidechain solutions, the space becomes scarce and a bidding war happens. Bitcoiners call this the “fee market” and people compete with higher transaction fees in order to get faster confirmation times.