As the Price of Bitcoin Rises with The Price, Transaction Fees Stays Relatively Low
On Nov 25, 2020
Transaction fees for Bitcoin stay relatively stable if we compare it with the 2017 bull run. It seems that Bitcoin is ready for the next ATH.
Bitcoin is one of the trending topics on cryptocurrencies. If you do not know other cryptocurrencies, it is highly probable that you know Bitcoin. Bitcoin leads the market with the highest market capitalization and with the highest price. According to Tradingview, Bitcoin accounts for 62% market dominance. Bitcoin is traded for over $19000 at the market.
Bitcoin is as bullish now as it was at the end of 2017. However, Bitcoin is not the same old Bitcoin, which experienced such high prices in the short term. Bitcoin seems more mature than it was in 2017. During the bullish move in 2017, the transaction prices peaked in a short time. Bitcoin had the highest ever transaction fee mean, which was $55.16 in 2017. It caused various problems for Bitcoin. Even Roger Ver invested in the fork of Bitcoin Cash to solve high transaction fees and scalability problems. Although Bitcoin broke the records, the records unleash the defects of the Bitcoin blockchain.
Bitcoin moves towards an all-time high price every day. Founders of Gemini, Tyler Winklevoss, posted on Twitter that Bitcoin is $500 away from its all-time price of $19800. Although Bitcoin is on the shore of ATH, the transaction fee is not skyrocketing. According to the Glassnode, the mean transaction fee was $4.87 on 24 November.
The reason could be the exchange volume of Bitcoin. If we look at the exchange trade volume, we can see that volume is not significant as in 2017. Although Bitcoin goes for ATH, the exchange volume is much lower than in 2017.
Also, unconfirmed transactions are not so high as in 2017. According to the Mempool data, unconfirmed transactions are less than the stated period. There are 50k unconfirmed transactions on 25 November, which is three times lower than in 2017.
It worth mentioning that Bitcoin seems more ready for the ATH than in 2017. The previously mentioned bull run made Bitcoin stronger than it was before.