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The most recent increase in BTC transaction fees coincides with a significant drop in the Bitcoin network hash rate.
Bitcoin (BTC) transaction fees in US dollars are approaching 2017 peaks, notwithstanding a massive decrease in hash rate on the Bitcoin network.
According to data from several Bitcoin tracking services, the total BTC transaction fee in US dollars is close to the all-time high set in 2017.
According to Blockchair info, the average cost of a Bitcoin transaction increased Tuesday to $58, approaching the all-time high of more than $62 set in December 2017. According to famous Bitcoin analytics site BitInfoCharts, new BTC fees have already surpassed the 2017 high of $54 at $58 on Tuesday.
According to other outlets, including big blockchain explorer Blockchain.com, the average BTC transaction cost on Tuesday was $58.
Despite several sources showing the current BTC transaction fee near $60, other sources show a much lower figure. Major Bitcoin analytics website Clark Moody reports an average BTC fee value in dollars — over the last 2,016 blocks — of $27.5 at the time of writing. According to data from Ycharts, the average Bitcoin transaction commission is $43 at publishing time after hitting $50 on Sunday.
When Bitcoin reached $20,000 for the first time in late 2017, transaction fees for BTC surpassed $50. Bitcoin is currently priced at $55,190, after falling from an all-time high of over $64,000 last week.
The most recent increase in BTC transaction fees coincides with a significant drop in the Bitcoin network hash rate. The overall BTC network hash rate fell from 172 million terahashes per second to about 154 million TH/s on Sunday, the biggest daily decline since November 2017. According to cryptocurrency experts, the drop is most likely due to major power outages in the Chinese mining hub of Xinjiang.
The decline in the BTC network hash rate could eventually impact the mining difficulty of Bitcoin, potentially pulling the measure downwards. Happening once every 2,016 blocks, — or roughly every two weeks — the next Bitcoin difficulty adjustment is expected to happen in 12 days. According to online estimates, the next BTC difficulty adjustment could be the largest downward adjustment since November 2020 if the hash rate doesn’t recover by early May.
The fall in the BTC network hash rate could ultimately have a bearing on Bitcoin’s mining difficulty, possibly dragging the metric down. Happening once every 2,016 bytes, — or approximately every two weeks — the next Bitcoin complexity change is scheduled to happen in 12 days. If the hash rate may not rebound by early May, the next BTC complexity adjustment could be the biggest downward adjustment since November 2020, according to online forecasts.
With BTC transaction costs skyrocketing, several crypto exchanges have rushed to launch less costly ways to transfer Bitcoin, with OKEx integrating the Lightning Network on Monday.