Bitcoin Transaction Fees Surge Ahead of Runes Protocol Launch
Recent data reveals a substantial increase in bitcoin transaction fees since the beginning of April. Metrics indicate that the average fee has risen to 133 satoshis per virtual byte or $19.48 per transaction.
The surge in fees comes as the highly anticipated halving event is expected to occur in the next 229 blocks. As of April 18, there are approximately 164,000 pending transactions or the equivalent of 220 blocks worth of transfers awaiting confirmation.
Transaction activity has been on the rise since April 4, with more than 450,000 confirmed transactions per day for the past 11 days. This upward trend in transaction volume correlates with the increase in transfer fees, which climbed from an average of $2.86 per transaction to $9.09 per transaction in just three days.
On April 12, the average fee reached its peak at $24.39 per transaction. Currently, the average transfer fee stands at $19.48 or 133 satoshis per virtual byte (sats/vB). The median bitcoin fee is approximately $11.11 or 75.9 sats/vB. Transactions with lower fees, around 40 sats/vB, are queued up, while those below this rate face delays in the mempool.
The recent surge in fees can be attributed to the growing excitement surrounding the upcoming Runes protocol. Over the past two weeks, there has been an increase in Ordinal inscriptions, and some believe that this has contributed to the rise in fees. Runes represents a new standard for creating fungible tokens on Bitcoin, utilizing a method that differs from BRC20 tokens.
The transfer of Ordinal inscriptions and BRC20 tokens has been a significant factor in the increase in BTC fees this year, and it is anticipated that there will be further increases following the launch of Runes. Reports indicate that even Bitcoin's testnet has experienced a significant fee hike due to Runes.
What are your thoughts on the rising onchain fees ahead of the halving? Feel free to share your opinions in the comments section below.