The cost of sending a transaction over the Bitcoin network rose sharply over the past month, as the price of the top cryptocurrency climbed higher.
The fee dropped to $2.73 on August 9, but still represents an increase of about 150% from 30 days earlier.
It cost BTC users $6.65 to send a transaction over the blockchain on May 20, just nine days following Bitcoin’s scheduled supply cut. This is the highest fees have reached in three months.
Fees are paid each time a Bitcoin transaction is processed and confirmed by a miner, who pockets the fees, in addition to the block reward, as revenue.
As a percentage of revenue for BTC miners, fees got to about 12% on August 6, before declining to around 6% three days later.
Transaction costs are mainly driven by increasing demand for processing transactions through the Bitcoin network – itself a result of surging BTC prices.
Fees are also determined by other factors as such the size of the transaction and mining difficulty – all of which appear to be ticking higher.
Bitcoin has lifted to an eleven-month high of $12,000 after several weeks of sub-$10,000 performance. The crypto’s resurgence is viewed by analysts as a primer for a sustained rally toward a price of $28,000 by year-end.
As per the Bitinfocharts figures, BCH transaction fees averaged just $0.0069 (or under 1 cent) as of August 9, down 24% from $0.0091 three days prior. A month ago it cost $0.0056 to transact over the network.
For dash, each transaction cost $0.0032 on Sunday. The coin has moved only very marginally since July 6, remaining below 1 cent throughout the period.
Ethereum, the second-largest cryptocurrency by market capitalization, has trended…