Bitcoin Network Fees Drop 30% Despite Price Hike, Miners’ Revenues Soar
Bitcoin Network Fees Drop 30% in 7 Days, Miners Remain Calm
The network fees for Bitcoin have dropped by 30% over the past seven days. Despite this drop, Bitcoin miners are remaining calm. The decrease in network fees occurred despite an 8% price increase in the king coin.
Less Urgency for Transaction Confirmations
According to blockchain analysis firm IntoTheBlock, miners have earned $16.4 million in network fees in the last week. This is a decrease of 30%. Interestingly, this decrease came despite an 8% price increase in Bitcoin. Data analysis from Santiment shows that the number of Bitcoin transactions has significantly decreased over the past seven days. The number of transactions dropped from about 631,000 on January 28th to just 328,000 on February 4th, a decrease of about 48%.
Less Network Activity by Users
Since the network was not congested, users did not have to offer higher fees to have their transactions included in the blockchain database. According to the analysis of mempool data by AMBCrypto, the fee rate with the highest priority was the same as that without priority. This means that the queue for unconfirmed transactions was not long enough.
Decrease in Inflows to Spot ETFs as Main Trigger?
IntoTheBlock attributes the decrease in network activity to a decrease in inflows to recently approved spot ETFs. AMBCrypto confirmed this claim with data from SoSo Value. In fact, daily net inflows decreased by 68% in the last week. This could likely have affected trading activity and thus network usage.
Miners Still Earn Decent Revenues
Despite this development, miners’ revenues were not significantly affected. The total revenues of miners, which include the fixed block rewards, increased by 4% in the last week according to data analysis from Santiment. The increase in the market value of Bitcoin could have offset the decrease in fees.
Market Sentiment Remains Greedy
The Bitcoin market was characterized by a greedy sentiment, according to the analysis of Hyblock Capital’s data by AMBCrypto. This means that more traders are interested in accumulating the king coin, which in turn could help boost prices.
Sources: IntoTheBlock, Santiment, Mempool, SoSo Value, Glassnode, Hyblock Capital
|Percent Change 24h