Since January 2021, transaction processing fees on the Bitcoin network have descended by about 57%. According to the YCharts service, in 11 months, the average collection fell from $4.4 to $1.8.
Analysts are looking at several factors driving the drop in network fees.
One of them is the growing Lightning network. Its use in transaction processing has grown significantly over the past few months. Recall that the operation is carried out outside the base blockchain, which reduces the load on it.
Another factor contributing to lower fees was the removal of all outstanding transactions.
Trending: CoinShares: Bitcoin funds raised $8.8 million in a week
On April 21, the average commission on the Bitcoin network reached $ 62.8 - a record figure. The crackdown on miners in China led to a drop in hash rates and a surge in demand for sending funds. This situation provoked a short-term rise in the cost of transactions.
Over the past few months, the average daily number of transactions on the blockchain has noticeably reduced. If at the beginning of 2021 the network processed more than 350,000 transactions daily, now, this number has dropped below 250,000.
Analysts also recorded a drop in transaction fees on Ethereum. The average collection fell to $ 37, while in May, it was close to $70.