The overall Bitcoin fees per day amount can depict the overall health of the network. Contrary to what some may expect, the overall fees – barring the coinbase transactions – are not that steep. In fact, they have been on a strong decline since early November, despite the Bitcoin value going up again.
Bitcoin Fees per day Remain Relatively low
Transacting on the Bitcoin network is often deemed “expensive” and “slow”, While that latter part is still true today – but not always – the overall fees are not necessarily something to be worried about. In fact, the fees per day have been fairly low for the past three months, barring an odd spike on late October of 2020,
Looking at the chart below, there is a relatively constant average in Bitcoin fees per day. It is normal to see some peaks and lows along the way. No two days are the same in the world of cryptocurrency, after all. Even for Bitcoin, there are calmer days and busier days where network activity is concerned.
What is remarkable is how the overall fees have hovered between $400,000 and $1.6 million for a while now. That may seem like a lot, but it really isn’t. Bitcoin’s network transfers billions in value every day, some of which is hardly ever recorded on data aggregating websites. Data pulled from the API will often tell a picture that resembles the chart seen above.
What is intriguing is how the Bitcoin daily fees rose to over $3.5 million not that long ago. For some reason, the fee went from $0.83 million to $3.52 million in a matter of days. This may have something to do with recent mempool issues recorded on the network. Things have certainly calmed down again ever since that peak, though.
Miners Aren’t Affected That Much
Overall, pending less fees on Bitcoin transfers is beneficial for all BTC users. No one likes to pay an arm and a leg to move Bitcoin across the network. Those who mine Bitcoin and help secure the network, on the other hand, may not be too happy with these low numbers. If $400,000 in Bitcoin fees per day has to be distributed among miners, they will not see much revenue from these transactions.
That being said, miner revenue from network fees has been on the decline for a while now. It does not appear to impact overall miners revenue, according to this chart by Blockchain. More specifically, there has been a strong increase in revenue over the past few weeks. A rising Bitcoin price can often do wonders in that regard.
All things considered, the BTC network appears to be in a good place. Miners seem happy with the way things are going, and the fees per day are at a manageable level. Even with the BTC value going up in recent weeks, that situation seems to remain unchanged. A strong end to 2020 will be welcome for those who survived the crypto winter of 2018 and 2019.