Bitcoin network transaction fees have collapsed by over 60% - here's why

With Bitcoin (BTC) hovering around the $64,000 mark, well below its March high and just above the critical demand zone, activity on the chain has slowed significantly, leading to a drastic 64% drop in total Bitcoin fees transactions.

According to data of Into The Block in the network of Bitcoin transaction fees fell sharply to $19.2 million. These charges usually reflect network activity, indicating a current lack of it.

Conversely, fees soared during the crypto boom of 2017, peaking near $60 per transaction during network congestion.

The current lackluster activity suggests a period of market stagnation and reduced interest from crypto traders and investors in the largest cryptocurrency by market capitalization.

Separately, reduced transaction fees and reduced mining rewards after the recent halving event may cause miners to increase their BTC sales on crypto exchanges.

CryptoQuant reported that miner sales hit a two-month high, putting downward pressure on the price of Bitcoin.

Bitcoin is currently trading at $63,750, down 3.53% in the last 24 hours. Despite these short-term losses, BTC is still up more than 50% year-to-date, reflecting its overall upward trajectory in 2024.