Bitcoin witnessed retail speculation that was diminished. Not only that, but it also saw an on-chain transaction, that was quite low. These factors, together, caused the transaction fees to stay stagnant, at a low point. All this happened, despite the surge of Bitcoin to re-test the highs of the year 2017.
In the year 2017, the fees spiked above 50$, which was charged to send any amount of BTC. The fees, currently, incurred on one transaction, is in contrast to that of 2017. It is around $3.50. However, the transaction values on an average, point to the fact that the present rally is not accompanied by the common retail trading frenzy. That one causing the cost to be $20,000 in the year 2017. The current transaction value, in question, is $200,000.
According to the beliefs of the co-founder of Ethereum, Vitalik Buterin, the current low fees of Bitcoin will not change. He said, through his Twitter account, that, a majority of users will be forced out. And, this will take place, if the transaction fees increase inevitably.
What Do The Different Data Have To Say About Bitcoin?
Looking into the data, it is unlikely that there will be high fees. This comes from studying the environment, currently. There are a series of things that are needed to know if you want to understand the background details. Do make sure that you do not miss the number of transactions that are being processed. This should be followed by looking into the transaction values. And, finally, noting the long term BTC that is being held.
There is no difference between the transactions of the waiting room and the memory pool of Bitcoin. The daily number of unconfirmed transactions, shown by the memory pool of Bitcoin, currently, is at 38,900. When compared to the figures of 2017, this number is around 20% of that of the year 2017.
The fact, that the transaction numbers are less, as compared to the bull market of the previous time, deserves to be noticed. Not only that, but there has been no response, the numbers remain constant, even in the price surge response. Furthermore, the average moving for seven-days reflects a downfall, overall. This is seen since the year 2019 began.
The Bitcoin transaction on average, surpassed the high of $150,000, of 2017. This happened in October. The average, that was calculated ten days ago, surpassed $190,000. This number points towards the fact that the transacting people or organizations are the wealthy ones, even though there has been a decline in the overall transactions.
This time the users of Bitcoin are not participating in any transactions.
According to the suggestions of Chainanalysis, the pause in the supply by investors would cause the available Bitcoin for buyers to be of the small amount of 3.4 million.