After the Bitcoin (BTC) halving, the cost of transactions on the network surged due to the introduction of the Runes token standard, causing gas fees to explode. However, as a surprising turn of events, CryptoQuant analyst Julio Moreno has noted that transaction fees have been decreasing sharply.
Based on his examination, there were an enormous amount of Runes transactions on April 20th. Surprisingly, the transaction fees dropped significantly during this time. Previously, we mentioned that a trader spent over half a million dollars in fees for Runes transactions. This event is not unusual in the Bitcoin network. However, the increased gas prices may make it difficult for regular users to afford conducting transactions on the platform.
Based on Moreno’s findings, the cost of Bitcoin transactions per day was actually lower than it had been in late 2017 and early 2018, even though there was a significant increase in the use of Runes. However, this positive development may not be enough to overcome the potential challenge ahead. The network’s balance could shift negatively in the future.
The typical Bitcoin transaction fee has noticeably decreased. For clarity, it is now less than what was paid on average during the busy periods in late 2017 and early 2018 despite the increased activity with Runes yesterday.
— Julio Moreno (@jjcmoreno) April 21, 2024
The happenings on the Bitcoin blockchain currently follow a pattern set earlier in the year. Notably, the BRC-20 token standard emerged, resulting in a surge of transactions that we’re only now starting to see subside.
Unique twists in Bitcoin transactions
The adoption of the Runes standard gives Bitcoin a strong position among miners due to increased demand and high traffic. With Bitcoin’s transaction fees having been lowered by the halving, this surge in Runes transactions will serve as a valuable buffer for miners to continue operating profitably.
Bitcoins approaches transactions differently than Ethereum; it currently lacks plans to modify its blockchain to decrease transaction fees, in contrast to Ethereum’s recent update. Known as the “London Upgrade” or “EIP-1559,” this change positively affected Ethereum’s Layer-2 protocols by significantly lowering their transaction fees.
Although more people are using Bitcoin for various transactions, the developers working on its core have not prioritized finding ways to lower transaction fees at this time.
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2024-04-21 14:42