Bitcoin Transaction Fees Soar 550% in a Month, BCH, Dash Transactions Much Cheaper

The cost of sending a transaction over the Bitcoin network has risen sharply in the last month as the price of the top cryptocurrency has increased.

According to latest data of Bitinfocharts, the average Bitcoin (BTC) The transaction fee increased up to 547% for the month ended August 6, climbing from just $ 1 to $ 6.47.

The fee fell to $ 2.73 on Aug 9, but it's still about a 150% increase from 30 days earlier.

It cost BTC User $ 6.65 to send a transaction over the blockchain on May 20, just nine days after Bitcoin's planned delivery cut. This is the highest fee in three months.

The fees are paid every time a Bitcoin transaction is processed and confirmed by a miner, who pockets the fees as revenue in addition to the block reward.

As a percentage of sales for BTC Miners' fees rose to about 12% on Aug. 6, before falling to about 6% three days later.

Transaction costs are mainly driven by increasing demand for transactions over the Bitcoin network – itself a consequence of the increase BTC Prices.

Fees are also determined by other factors such as the size of the transaction and the difficulty of mining, all of which appear to be higher.

Bitcoin has canceled after several weeks of under $ 10,000 performance to an eleven month high of $ 12,000. The crypto resurgence is viewed by analysts as the cornerstone of a sustained rally towards a year-end price of $ 28,000.

For comparison: transactions processed over blockchain networks such as bitcoin cash (BCH), Dash and Ethereum (ETH) are considerably cheaper.

According to the Bitinfocharts numbers BCH Transaction fees averaged just $ 0.0069 (or less than 1 cent) as of Aug 9, a 24% decrease from $ 0.0091 three days earlier. A month before. The transaction over the network costs $ 0.0056.

For Dash, each transaction on Sunday costs $ 0.0032. The coin has moved very little since July 6, and stayed below 1 cent throughout the period.

Ethereum, the second largest cryptocurrency by market capitalization, has seen an upward trend as investors pile into the asset in anticipation of the network upgrade called Ethereum 2.0, among other things.

ETH Average fees are up 253% from $ 0.55 on July 6 to $ 1.94 yesterday.

What do you think of transaction fees for cryptocurrency networks? Let us know in the comments below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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