This is a great time to move Bitcoin (BTC) between wallets and exchanges. According to research by Galaxy Digital, Bitcoin transaction fees have reached an all-time low in BTC.
#bitcoin fees are at an all-time low. craziest thing? Fall 2021 was the first bull run without a significant fee spike. how is that possible? what does that mean? here is a thread explaining the most confusing (and surprising) chart in bitcoin. (remember June 2021) pic.twitter.com/gnWssTckX2 — Alex Thorn (@intangiblecoins) April 5, 2022
As shown in the chart below, the average bitcoin transaction fee fell to 0.00004541 bitcoin ($2.06) in 2022, while the median is 0.00001292 bitcoin ($0.59), which is the most the lowest for any year other than 2011, according to the report.
According to Alex Thorn, head of enterprise research at Galaxy Digital, the combination of growing Segwit adoption, batch transactions, the growth of the Lightning network, falling miner sales, and “declining OP_Return usage” has led to a drop in fees never seen before. over ten years.
Glassnode lead online analyst James Check agreed with Thorne, explaining to Cointelegraph that “batch processing and Segwit are definitely part of the mix” as the combination would increase the number of transactions that fit into a block and thus increase throughput. and reduce commission pressure.
He shared the following chart to show that Segwit adoption “increased significantly at the May-July lows.”
However, Chek continues, “That’s not the whole story…”:
“The main reason I think the fees are low is because we had a 50% price drop in May, which completely undermined retail interest.”
He suggests that “all three [сборы, активные адреса и количество транзакций] collapsed after the May sale.
“This, in my opinion, was the likely start of a bear market, and even with prices rising, we saw so many people suffer financial losses and thus exit the market.”
Eric Yaks, author of The Seventh Property: Bitcoin and the Monetary Revolution, told Cointelegraph: “We are seeing structural changes in market dynamics and historical correlations don’t matter much.”
As for the future of the network, “$70 million raised by lighting labs to create a stablecoin and asset protocol” is a key milestone for the Bitcoin protocol. He added that “it is important that transaction fees go down as they are the main constraint for scaling the network in a decentralized manner.”
Related: Bitcoin Lightning Network Power Growth Plateau at 3400 BTC
Ultimately, while transaction fees are a boon for wallet administrators and the opening of Lightning channels, it could be a sign that retail interest has dried up. To Check: “look no further than the old Google trends to see how popular the orange coin is right now,” suggesting “virtually nil new user influx.”
Jax has the last word on the emergence of Bitcoin:
“Bitcoin needs a lightning network to continue its growth momentum and to have a thriving smart contract development network.”