According to data analytics company IntoTheBlock, Bitcoin transaction fees have significantly declined this week, falling by more than 15% to $3.3 million.
With a 7-day average of 474,720 transactions, the volume of Bitcoin transactions has also decreased over the last week.
The week’s high and low numbers of transactions were 612,460 on August 20 and 399,150 on August 24, respectively.
The people and companies who authenticate and log transactions on the Bitcoin network are known as miners, and these fees operate as an incentive for them. Essentially, lower fees might mean less money for the miners to make but cheaper transactions for the customers.
Data on transactions by size reveals a variety of trends. In the previous month, there was an increase of 52.10% in transactions between $0.00 and $1.00.
While this was happening, there was a 28.46% decline in activity for transactions between $1.00 and $10.00. Significant losses were also seen in larger transactions, with sales above $10 million decreasing by 41.97% and those between $1,000 and $10,000 falling by 21.66%.
Anemic market
The cryptocurrency market is now suffering its lowest level of derivative trade since late December 2022, according to Neon, a cryptocurrency analyst. An apparent change in market sentiment has erased prior leveraged holdings.
This refocuses attention on impending supply events like the release of 30,000 coins from the Silk Road controversy, the $500 million trade of major cryptocurrencies on FTX, and the Mt. Gox bankruptcy case.
Given that they contrast with demand-side variables like the potential for a spot Bitcoin ETF, initiatives by Grayscale, and impending Ethereum futures ETFs, these developments are anticipated to have an immediate impact on the market.
