Bitcoin transaction fees surged to 1,258 BTC, while new addresses declined to 260,838.
Runes protocol offset post-halving miner yield reduction, causing network congestion and high fees.
Despite recent dips, average Bitcoin transaction fees remain at 34.86.
Per insights from Glassnode, there has been a significant surge in fees paid to Bitcoin miners, reaching 1,258 BTC. This increase in transaction fees coincides with a decline in the creation of new Bitcoin addresses, which dropped to 260,838.
The recent Bitcoin Halving event was expected to slash block rewards by 50%, reducing miners’ yields. Instead, the introduction of Casey Rodarmor’s Runes protocol has offset this expectation.
This new protocol, designed for minting digital tokens on the Bitcoin blockchain, has quickly gathered popularity, leading to unprecedented network congestion and soaring transaction fees.
Although the total Bitcoin transaction fees hit 1,258 BTC, a slight decrease has occurred from the recent peak observed. Data from Mempool reveals that the average transaction fee currently stands at 34.86, a decline from the 128.45 high on April 20. While this drop represents a 72.86 % dip from Saturday, it mirrors an impressive 2.65K% rise from a year ago.
During periods of network congestion, such as the 2017 crypto boom, average Bitcoin transaction fees tend to spike, nearly reaching 60 USD. However, the decrease in new Bitcoin addresses may be attributed to the deterrent effect of high transaction fees on potential new users joining the network.
Following the much-anticipated halving event, Bitcoin showed market little response but has since gained traction. Per data from CoinMarketCap, Bitcoin trades at $66,178, printing a 1.76% rally over the last intraday trading session.
Even though market experts like JPMorgan have cautioned investors regarding a potential post-halving price decline, Bitcoin’s prevailing outlook remains bullish for the long term.
Bitwise, a leading asset management firm, has noted historical trends regarding Bitcoin’s price trajectory. Based on past cycles, Bitcoin experiences a brief drop in value immediately after halving, followed by significant gains in the subsequent year.
For instance, after the 2012 halving, Bitcoin saw a modest 9% increase in the month following the event but surged by an impressive 8,839% over the following year. Identical patterns were observed after the 2016 and 2020 halvings, reinforcing this trend.
Moreover, Kris Marszalek, CEO of Crypto.com, has voiced similar sentiments regarding Bitcoin’s price. He asserted that while Bitcoin might face selling pressure before halving events, the overall outlook remains optimistic in the long term.
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