According to a report by data resource firm Diar, Bitcoin transaction fees are at their 2014 lows again.
“Bitcoin transactions hit a one-year high last month nearing levels seen in the 2017 ramp up to the price boom,” says the report. Moreover, as at press time yesterday, the report finds that Bitcoin median fees had dropped to 2014 levels of USD 0.1 equivalents.
According to the report, these new fee levels have not been seen since 2015 despite on-chain monthly Bitcoin activities that have superseded those of 2018 in total, although the median transaction value in Bitcoins are lower compared to previous months and comparatively with those of 2015.
The report also highlighted transaction counts hitting a one-year high since the last bull-run of 2017. In another post referencing transactionfee.io, Bitcoin’s network throughput may have improved hence the positive outlook on transaction fees. To that effect, cryptocurrency exchanges have been seeing increased transaction performances, with Coinbase reportedly seeing 21% of transactions in 2018 compared to 2017 and others like Kraken and Bitfinex as high as 192% and 50% respectively.
Nevertheless, Bitcoins moved on-chain in January 2018 are still higher than those of 2019. Earlier this year, Bitcoin News reported on Bitcoin transaction performance, referencing Jameson Lopp who said Bitcoin transaction volumes had dropped from a peak of USD 38 billion earlier in 2018 to a low of USD 3 billion (a staggering 92% drop).
Daily on-chain bitcoin transaction volume peaked at $38B in early 2018 and dropped 92% to around $3B. pic.twitter.com/mLfgRlbLeP
— Jameson Lopp (@lopp) December 21, 2018
Bitcoin transaction volumes and fees among other metrics are important markers to determine the state of the network. During the hype drive of 2017 bull-run, while transaction volumes skyrocketed, fees went up as well; this made it hard for micro Bitcoin transactions to make it through the network on time, which ended up creating a backlog. However, since then so much has improved on the network, coupled with the introduction of the Lightning network (LN), moving forward so much is expected in terms of higher throughput should another peak in market activity occur.
The overall assessment of the Diar’s report was that Bitcoin transactions are healthy thus far, considering the on-chain activities maintained a 3-month higher average than the better half of 2018.
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