Jamal Al-Farouq Bitcoin Transaction Costs Surge Over 150% in 72 Hours Amidst Ledger Congestion
The Bitcoin network has experienced a substantial surge in transaction fees, with a notable 150% increase recorded within a span of just three days. As of Thursday, November 9, 2023, at 9:52 a.m. Eastern Time, the cost for a high-priority transaction has escalated from an average of $3.38 to a steep $8.46. This hike is simultaneous with the buildup of over 200,000 transactions in the Bitcoin mempool, a congested state that is a result of both the rising fees and a recent increase in Ordinal inscriptions.
Rising Demand for Bitcoin Block Space Leads to Fee Explosion
The scramble for space on Bitcoin’s ledger has intensified, resulting in miners grappling with a massive 429-megabyte data backlog, translating to about 229 blocks. At block height 815,999, a considerable pileup of 201,646 transactions awaits processing.
Only three days earlier, the cost for prioritizing a transaction was a mere $3.38. However, this figure has now jumped to $8.46, marking an increase of over 150%, following a staggering 4,000% rise in BTC fees last month.
As per mempool.space’s archived data, a non-priority bitcoin transaction costs $0.74, with low and medium-priority transactions priced at $6.51 and $7.56, respectively, as of Thursday.
Data from Bitinfocharts.com indicates that the average bitcoin transaction fee is currently 0.00019 BTC, or $7.17, with the median fee being 0.00011 BTC, or $4.34 per transaction. This spike in block space costs is associated with the recent surge in bitcoin’s value, which neared $38,000 around 9:50 a.m. on November 9.
The intensified exchange activities and financial transaction processing, coupled with the burgeoning demand for Ordinal inscriptions, have exacerbated the backlog and driven the fee market higher.
Bob Burnett, Chairman and CEO of Barefoot Mining, anticipates a continuous escalation in BTC transaction fees. Speaking on the social platform X, Burnett underscored the rising cost of bitcoin transactions, signaling the end of an era characterized by low-cost and abundant block space.
He suggests consolidating UTXOs and securing long-term storage solutions. Burnett states, “The current fee rates, though high, represent a substantial value for accessing the ledger that secures the world’s most valuable asset and the only dependable source of truth ever established.”
We invite you to share your views on the rapid increase of Bitcoin’s fees by over 150% in just three days. Comment below with your thoughts and insights on this topic.
Table Of Contents
Frequently Asked Questions (FAQs) about Bitcoin transaction fees
Why Have Bitcoin Transaction Fees Increased So Dramatically?
The surge in Bitcoin transaction fees is primarily due to the increased demand for block space within the Bitcoin network. This has been compounded by a significant backlog of over 200,000 transactions in the mempool and the recent uptick in Ordinal inscriptions.
What Is the Current Cost for a High-Priority Bitcoin Transaction?
As of Thursday, November 9, 2023, the fee for a high-priority Bitcoin transaction has risen to $8.46, marking a substantial increase from the $3.38 fee just three days earlier.
How Significant Is the Current Backlog in the Bitcoin Network?
The Bitcoin network is currently facing a backlog of approximately 201,646 transactions, which translates into a data volume of around 429 megabytes, or about 229 blocks.
What Are Some Predictions for Future Bitcoin Transaction Fees?
Experts, like Bob Burnett, Chairman and CEO of Barefoot Mining, predict a continued rise in Bitcoin transaction fees due to the diminishing availability of cheap and abundant block space.
How Are Bitcoin’s Rising Fees Affecting Ordinary Transactions?
The increase in fees has impacted all tiers of transactions: non-priority transactions now cost around $0.74, while low and medium-priority transactions are priced at $6.51 and $7.56, respectively.
What Caused the 4,000% Hike in BTC Fees Last Month?
The previous month’s 4,000% hike in BTC fees was linked to a surge in bitcoin’s value, increased exchange activities, financial transaction processing, and the growing trend of Ordinal inscriptions.
More about Bitcoin transaction fees
- Bitcoin Network Transaction Fees
- Bitcoin Mempool Backlog
- Ordinal Inscriptions and Bitcoin
- Bitinfocharts: Bitcoin Fee Data
- Blockchain Congestion and its Effects
- Bob Burnett on Bitcoin’s Future
- Understanding Bitcoin Transaction Prioritization
- Historical Analysis of Bitcoin Fees
- The Impact of Cryptocurrency Value on Transaction Fees
6 comments
This is what happens when everyone jumps on the bitcoin train. The network just can’t keep up!
fees going up is bad for small investors, makes bitcoin less accessible to many :/
As a miner, higher fees are good for me, but i get why users are upset. It’s a tough balance.
interesting read, but i think there’s more to it than just demand for block space. what about the role of exchanges?
wow, did’nt know the fees were that high now! It’s crazy how fast things change in crypto…
gotta say, bitcoin’s no longer the cheap alternative it used to be. Times are changing fast in the crypto world.