Bitcoin Transaction Fees Fall to Lowest Level in 4 Years

On July 7, the average fees for processing Bitcoin transactions reached their lowest point in four years, with a reported value of $38.69. This figure had previously only been seen during the peak of the COVID-19 pandemic in 2020.

The cost per transaction is determined by both the revenue of miners and the total number of transactions being processed.

On this particular day, Bitcoin’s value was trading at over $58,200. The decrease in transaction costs can be attributed to two main factors: lower demand for block space and a decrease in data volume.

According to data from Ycharts, miners processed a total of 673,752 transactions on the Bitcoin network on July 7. BTC made up the majority of these transactions at 89.7%, with the remaining bandwidth being used by other protocols such as Ordinals (0.7%), BRC-20 (4.1%), and Runes (5.4%).

Despite the lower transaction costs, miners still benefited from reduced network difficulty, which allowed them to process transactions using less computational power.