Bitcoin Blockchain is starting to wake up from the death spiral
Data show that the recent sale has brought the Bitcoin blockchain activity back to life after it had been subdued for a while now.
Bitcoin On-Chain activity returns as sales continue
According to the latest weekly report from Arcane Research, BTC transaction fees have observed a 17% increase in the last week.
In recent months, activity in the Bitcoin chain has been quite subdued as fewer movements took place and transaction fees remained low.
“Transaction Fees” is the amount any investor must attach to the transaction to complete the transfer.
Miners receive this fee in exchange for handling the transaction. They usually prioritize transactions with higher fees to maximize their revenue.
The value of the average Bitcoin transaction fee is variable as it depends on the specific network conditions at the time of transfer.
When the meme pool is clogged due to the network observing a high number of transactions, the fees naturally increase.
This is because miners can only handle a limited amount of transactions at a time and investors who do not want to wait only add a larger fee.
Related reading | Bitcoin Miner revenues now 61% lower than last year’s average
The Bitcoin network has not been too busy in recent months, so transaction fees have remained at historically low levels.
Now, here’s a table that shows how Bitcoin mining – related calculations have changed in the last week:
Looks like the average transaction value went up over 52% during the past seven days | Source: Arcane Research's The Weekly Update - Week 24, 2022
As you can see above, Bitcoin transaction fees increased by 17% in the last week as the price of the crypto plummeted.
The fees per day now amount to 2.39% of the total BTC miner income, the highest value since July last year.
Related reading | “Bitcoin is dead” Google search Register 12-month peak – Is Bitcoin really “dead?”
The transactions per day are currently 252k, which is about the same value as last week, as this number is largely the limit on the network.
The daily mining income itself has observed a deep 32% fall caused by the price crash and the increase in mining difficulty.
But things will soon be better for the miners as the hash rate has dropped, resulting in a reduction of 1.9% difficulty.
BTC price
At the time of writing, Bitcoin’s price is floating around $ 20.1k, down 5% over the last seven days. Over the past month, the crypto has lost 31% in value.
The price of the coin seems to have declined a bit over the past day | Source: BTCUSD on TradingView
Featured image from Dmitry Demidko on Unpslash.com, charts from TradingView.com, Arcane Research
