Bitcoin Fees Plummet Following Halving Day Spike To Record Daily Average Of $128

On the day of the Bitcoin halving, the spike in transaction fees compensated for the reduction in block subsidy that miners experienced. However, this trend has since reversed.

The average transaction fees on Bitcoin plummeted just one day after reaching a record high of $128 on April 20, coinciding with the fourth Bitcoin halving.

As of April 21, the average fees for medium-priority Bitcoin transactions have decreased to $8-10, according to mempool.space.

Just one day before, Bitcoin recorded $78.3 million in total fees, surpassing Ethereum by more than 24 times, according to Crypto Fees.

The same day saw an astonishing 37.7 Bitcoin (valued at $2.4 million) paid to Bitcoin miner ViaBTC for the Bitcoin halving block at block height 840,000, making it the most coveted block in the network’s 15-year history.

The high demand at block 840,000 was driven by memecoin and nonfungible token (NFT) enthusiasts eager to inscribe and etch rare satoshis using the Runes protocol, a new token standard introduced with the halving block.

With 3,050 transactions included in that block, the average fee paid by each user was just under $800.

Elevated block fees persisted until around block 840,200, according to mempool.space. However, they have since dropped to about 1-2 Bitcoin.

The large block fee payouts to miners on halving day initially cushioned the impact of the block subsidy reduction from 6.25 Bitcoin to 3.125 Bitcoin.

However, this is no longer true, as the average block fee has dropped significantly below 3.125 Bitcoin.

Fees on Bitcoin have surpassed those on Ethereum for six consecutive days between April 15 and 20, with the 7-day average for Bitcoin fees now at $17.8 million.

The Bitcoin halving event had little effect on its price, which has risen by 1.5% since then to reach $64,840, according to CoinGecko.

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