For the first time since June 2020, the average transaction fees of the Bitcoin network have fallen below $1.
The average transaction fee on the Bitcoin (BTC) blockchain has dropped below $1 for the first time in two years, making its use as a payment system more feasible, according to Blockchain Home and quoted by Cointelegraph.
The high transaction fee in blockchain networks is one of their weaknesses; Especially it is not cost effective to use them for low value transactions. For example, when the NFT market was booming, the Ethereum network faced heavy traffic congestion, which resulted in very high transaction costs and caused a lot of concern among activists and users.
Even though the Bitcoin ecosystem is smaller than Ethereum, it faces almost the same problem. Timely upgrades to Lightning and Taproot will bring cheaper and faster transactions. The use of the Lightning network has made micropayments not necessary to pay high fees and be done off-chain. As of Monday, the average Bitcoin transaction fee dropped to $0.825, a figure last seen on June 13, 2020.
In addition to timely promotion, the reduction of transaction fees can be attributed to several factors, including Bitcoin price drop And decreasing the number of transactions.
At the time of writing, the price of Bitcoin is $21,247, according to Blockchain Homeland Price Data Service.
Although users expect all network upgrades to reduce gas costs and increase transaction speeds, not all upgrades are built for this purpose. For example, the Ethereum Marge update does not reduce gas costs.
As explained by the Ethereum Foundation:
The transition of the Ethereum network to proof-of-stake obsoletes the use of proof-of-work for consensus, but does not significantly change any parameters that directly affect the capacity or power of the network.
- How much is the Bitcoin network fee?
The average Bitcoin network transaction fee is currently $0.825.