Bitcoin transaction fees have dropped significantly over the past year, meaning it’s a great time to move BTC between wallets and exchanges.
According to data presented by Crypto Presales, the Bitcoin average transaction fee stood at $1.14 last week, showing a massive 66% drop year-over-year.
BTC Transaction Fee Drops as Network Difficulty Recovers
High transaction fees over blockchain networks work against the users, especially when making low-value transactions. The average Bitcoin transaction fee can spike during periods of congestion on the network, like in April last year when it reached over $62.
However, moving Bitcoin across the network became considerably cheaper this year, as Lightning Network, miner behavior and protocol improvements have driven costs down.
According to YCharts data, BTC’s average transaction fee was $3.38 in November last year. After falling in December and January, it peaked at $4.47 in March. April saw a sharp fall to $1.37. However, by July, the average transaction fee had rose again to $2.32. Statistics show it was a downturn since then, with the average transaction fee dropping for three months in a row to $0.68 in October, the lowest point since April 2020. Last week Bitcoin’s average transaction fee was at a level of $1.14, 66.29% down from one year ago.
Mining Profitability Plunged by 83% Year-over-Year
Besides a considerable drop in average transaction fees, the Bitcoin network has also seen a severe fall in the daily average transaction value. In mid-November 2021, the average transaction value stood at $917,800, according to BitInfoCharts data. By the end of that month, it peaked at $2.45 million. Over the next seven months, it remained between $600,000 and $800,00 and peaked again at $1.27 million on June 15th. However, the average transaction value has been falling since then and dropped to $176,900 last week, 80% less than in the same month a year ago.
Bitcoin mining profitability has also witnessed a drastic drop year-over-year. Last week, BTC mining profitability was at 0.0597 USD/Day for 1 THash/s or 83% less than a year ago.