Alex Morris

Bitcoin (BTC) Transaction Fees Continue Declining Despite Trading Volumes Being on the Rise

Why are Bitcoin transaction volumes going through the roof while transaction fees continue plunging?
Bitcoin (BTC) Transaction Fees Continue Declining Despite Trading Volumes Being on the Rise
You may also like:
Contents

A new DataLight report shows that the average commission paid for executing Bitcoin transactions has fallen to $0.244 as of Feb. 16. In stark contrast to that, the transaction volume has actually substantially increased.

💼 Related Article
Bitcoin Fees Greatly Depend on Your Time Zone, New Study Shows
🔥 Hot
1 month
256
Bitcoin Fees Greatly Depend on Your Time Zone, New Study Shows

No correlation?

Bitcoin fees reached their peak on Dec. 23, 2017, with more than 250,000 transactions being stuck in the mempool. The average transaction fee reached $54.901.  

After that, Bitcoin trading fees fell as abruptly as the price of the coin itself. On Feb. 7, it reached a brand-new low of $0.161 (a world of difference compared to $4.588 a year ago).     

Transaction volumes are skyrocketing   

Meanwhile, the transaction volume has reached its highest peak in two years, almost matching December’s bull run. This is not surprising since major cryptocurrency exchanges saw their volumes spiking in 2018. However, as U.Today reported earlier, their volumes dipped substantially in 2019.     

That can be attributed to the rise in the Blockchain efficiency — as blocks are getting fuller, there is no incentive to pay miners higher fees. The low demand for new blocks results in underwhelming mining rewards.

The fastest way to get crypto news is to follow our Twitter. You won’t miss a thing! Subscribe.
190 views
👓 Recommended articles
something-wide
something-wide
Alex Morris

Blockchain Transfers Are 388 Times Faster Than Mainstream Remittance Services

⛓️🚀Fast, secure and cheap: the Blockchain takeover of the $700 bln remittance industry seems imminent
Blockchain Transfers Are 388 Times Faster Than Mainstream Remittance Services
You may also like:
Contents

Blockdata recently published a study that shows how Blockchain is disrupting the global remittance industry. Cryptocurrencies that rely on Blockchain greatly outperform traditional services when it comes to the time of remittance settlement.

card

The fastest cryptocurrencies

While many critics scold Bitcoin because of its scalability issues, an average transaction usually takes up to one hour to be processed. For comparison, Western Union, MoneyGram and other companies that represent the $700 bln industry would make you wait up to five days.

Ripple’s XRP, which is now being widely used for cross-border payments, offers even faster speed of 1,500 TPS.

card

Blockchain remittance companies

The aforementioned study also mentioned a lot of Blockchain-startups (SureRemit, InstaRem, etc.) that are focusing on making remittances faster and cheaper. Notably, most of these companies utilize existing Blockchain technologies, such as RippleNet and Stellar. There are also some exceptions: Wyre, for instance, uses its own technology for cross-border payments.

card

Join our Telegram channel to get news even faster!
653 views
👓 Recommended articles
something-wide
something-wide