Well who saw this coming? Ever since the third halving of the ever-famous cryptocurrency, transaction fees were going through the roof and it looked like there was only one direction where they would go. Between the start of April and the end of May, the transaction prices actually jumped over 2000% of its previous value. But like every other value involving cryptocurrency, what goes up must surely come down and the transaction fees are no exception. From March 20th to yesterday, the transaction fees have dropped down 91% and are once again under $1. According to Crypto Analytics website, BitInfoCharts, the transaction value right now is $0.56 as compared to the high of above $6.5 before. However, this is still more than the usual value at the second halving by a long shot.
There is a lot of speculation as to why exactly this happened but the most common explanation remains the same one, we got at the second halving. Simply put, more transactions at one time means more load on the servers and thus will have people paying higher to have their transactions go through first. Now that the hype has died down, and people are making less transactions, the load is lower directly influencing the transaction fee as well. Simple economics.
Will the transaction price go even lower? Will the interest die down? Could there be another underlying reason for this sudden decrease? If you have your own opinion on this topic, drop me a message at the chat box or any of the social links and we will be sure to feature you and your opinions.
