On April 20, the Bitcoin network experienced a substantial shift. As the halving event reduced miner rewards, transaction fees skyrocketed to 1,257.71 BTC, marking the highest level since December 2017 and accounting for over 75% of miner revenue for the day. This spike in fees coincided with significant network congestion, particularly exacerbated by new protocols like Runes. Amid these changes, the utility of Bitcoin for daily transactions became questionably high, with median fees around $93. This financial shift led to an unprecedented drop in active addresses on the network, sinking to the lowest in almost three years on the day of the halving. But what does this drastic change mean for Bitcoin's future and its position in the market?
High Bitcoin fees push active addresses down to 3-year low High Bitcoin fees push active addresses down to 3-year low
A surge in Bitcoin fees post-halving challenges its role in everyday transactions.
2 min read
Updated: Apr. 25, 2024 at 12:15 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.