In recent weeks, the Bitcoin network has undergone a notable transformation, marked by a significant reduction in transaction fees, coupled with a surge in miner revenue for the month of November compared to the previous month.
Data analysis on Thursday revealed that the average cost of Bitcoin transaction fees had dwindled to $5.89, with the median fee settling at $2.86. This marked a substantial decline from earlier in the month when fees had spiked above $18 per transaction. Despite the reduced fees, the blockchain’s utilization remained robust, processing approximately 347,791 transactions on that day.
The network experienced heightened activity around the previous Saturday, where a record-breaking number of over 475,000 transactions signaled substantial user engagement. This heightened level of usage persisted throughout the week, consistently exceeding 300,000 daily transactions.
On Friday, a backlog in the mempool led to roughly 269 blocks of unconfirmed transactions, underscoring congestion issues within the network. Despite this, miners concluded a profitable month, with total earnings reaching $945 million in November, surpassing October’s total of $880 million. Fee revenue alone approached the peak observed in May, with miners accruing over $124 million.
Transaction costs varied based on priority levels, with high-priority transactions priced at approximately $2.38, while those with no priority incurred an estimated cost of $1.17 per transfer.
This financial landscape for Bitcoin underscores a dynamic ecosystem where both network usage and miner profitability can experience significant fluctuations. Nevertheless, it also highlights the network’s capacity to efficiently handle large volumes of transactions.