BTC transaction fees hit lowest level since the start of the year as the market cools down.
And also because of new restrictions on Bitcoin mining in China, only few computers are now competing for blocks. Now, BTC Transaction fees hit low level.
Average BTC transaction fees dropped to lows of $7. Fees are not this low ever since the start of 2021.
The BTC blockchain charges a fee for every transaction and then distributes the proceeds to the miners.
Fees rise up when the demand for processing transactions exceeds the supply of the miners. Last April 21, average fees hit a record high of $62.8 per transaction.
On the contrary, fees fall when the mining supply exceeds the demand. The drop in fees shows that Bitcoiners are not as interested in placing transactions as they were a month ago.
That might have something to do with the current crash in the crypto markets. It sent the price of Bitcoin down from $60,000 to $36,000 in only a few weeks.
Will these go back to normal?
Also, Bitcoin miners are not as interested in processing transactions as well. Mining difficulty fell by 16% last Sunday, it was the sharpest decline in just a year. Bitcoin mining becomes even more easier when the total hash power backing the blockchain drops.
Also, Ethereum fees are down. This is because of a general cooling-off in the crypto market. The global crypto market cap fell from the highs of approximately $2 trillion from the last month to recent levels of $1.6 trillion, metric sites CoinGecko showed this data.
Lower prices, fees, and hash power follow the government crackdowns on Bitcoin mining in China. This is where the majority of miners are located. The crypto exchanges Huobi and OKEx have already started limiting specific transactions. Also, officials from Inner Mongolia now consider banning Bitcoin mining immediately.
📣 Cryptonetwork.News is now on Telegram. Click here to join our channel and stay updated with the latest Cryptocurrency, Blockchain, and Cryptomining headlines