Bitcoin users paid more in transaction fees towards the end of October than in the previous months. The average Bitcoin transaction fee surged to a yearly high at $13.15, according to Bitinfocharts. This increase in average fee was related to the significantly growing number of unconfirmed transactions in the Bitcoin network. Things are returning to normal as the mempool clears out, resulting in a decrease in the transaction fees.
Unconfirmed Bitcoin Transaction Declines
The Bitcoin mempool is where all the valid transactions wait to be confirmed on the Bitcoin network. Precisely on October 28, the number of unconfirmed transactions on the network surged to more than 100,000. This caused Bitcoin users to more in priority fees in order to accelerate the confirmation time for their transactions. Per the data from Bitinfocharts, the average fee was $11.67, which later increased to $13.13 on October 30.
The sudden surge in unconfirmed Bitcoin transactions was related to the network’s hashrate, which began nosediving in mid-October. From as high as 161.68 EH/s on October 24, the hashrate dropped to 90.63 EH/s on October 27. The hashrate dropped as many advanced mining machines went offline from the network, amid the seasonal migration of miners in China. Basically, there was less computing power to map new transactions on the Bitcoin blocks, thereby causing the mempool to grow.
Bitcoin Mempool Almost Cleared
Currently, the Bitcoin mempool looks relatively empty compared to last week’s figures. At the time of writing, there are 12,202 (8.54 MB) unconfirmed transactions on the network according to data provided by mempool.observer. Also, the decrease in the mempool subsequently results in the reduction of the Bitcoin average transaction fee. At the moment, the average fee sits around $7.8. It is still expensive to use Bitcoin, but slightly less so today.
Mempool cleared for the first time since October 20th in the weee morning hours. pic.twitter.com/JWMs3NsK7v
— 𝙼𝚞𝚛𝚌𝚑 (@murchandamus) November 10, 2020
Meanwhile, there is a renewed spike in Bitcoin hashrate as of November 9.. The hashrate surged by 42 percent to 161.9 EH/s but later dropped to 115.4 EH/s at the end of the day. Again, many people assume that the Chinese miners might have finally settled down. Assuming that is the case, it can offer a viable explanation for the increasing mining power.
Currently, the hashrate sits at 115.6 EH/s, according to Coinwarz. Note that the mining difficulty will increase in accordance with the increased hashrate. The mining difficulty adjusts every two weeks.