As we discussed not too long ago, Bitcoin miners earn less revenue from transaction fees as of late. Several factors contribute to this trend, including a decline in overall fees and mean fees paid. None of these statistics are negative for the broader Bitcoin network, however.
Bitcoin Fees Trend Is Positive
As the world’s leading cryptocurrency, the Bitcoin network needs to provide a viable and cheap solution to move funds across borders. In most cases, the network has an acceptable fee, although that situation has changed in recent months. It is not uncommon for the mean fee paid and overall fees to rise and fall during certain intervals.
In the past month, there is a strong decline in overall fees paid. The one-month low still sits at nearly $200,000, which is more than an acceptable figure for such a powerful network. Maintaining a high level of fees isn’t always beneficial, however, as people primarily want to use BTC as a cheaper alternative to remittances and bank transfers.
It is equally crucial to put the total fees paid into its correct perspective. With the USD value nearing $200,000, the BTC value in total fees paid has dropped to 3.538 BTC. That is not just a one-month low, but rather a three-month low. To some, this may seem strange, as those numbers wouldn’t add up. However, the value of BTC has risen significantly in the first quarter of 2021, indicating the network’s fee structure is different from what most may assume.
More specifically, it has not become more expensive to transact on the network despite the BTC price increase. Whether in USD or BTC value, the overall fees decrease significantly, which is beneficial to all Bitcoiners globally. Spending less money on transferring value is what Bitcoin is all about at its core. These statistics confirm the network is in a good place.
Mean Fee Paid Hits A Low
Bitcoin miners may not be too pleased with the way things are going. More specifically, the average fees are going down, but so is the mean fee paid. It is still at a relatively high level, all things considered, but there is progress to take note of. Paying an average of $17.06 per transaction is still exuberant and will need to keep decreasing over the coming months.
Considering how this fee spiked to over $25 not too long ago, it appears things are returning to normal again. Compared to a few weeks ago, the current mean fee is a decrease by nearly 35%. It is still above the average of $15 or lower, however. Bringing those fees down even further may pose numerous challenges.
Compared to some alternative cryptocurrencies, Bitcoin’s overall fees are still high. That is not abnormal, yet it creates some concerns as well. While it may be unlikely that Litecoin will become the go-to network for transferring value rather than Bitcoin, there are certain benefits to that network.