Copy link
Increase text size
Decrease text size
Link copied

Bitcoin Network Fees Skyrocket to Nearly $52 Amid Severe Transaction Backlog

Bitcoin network sees transaction fees soar to nearly $52 amid congestion.

Mon, 10 Jun 2024, 02:09 am UTC

Bitcoin network transaction fees soared to nearly $52 on June 7, driven by over 332,000 unconfirmed transactions, causing significant congestion and delays in processing.

Bitcoin Network Faces Temporary Congestion with Over 300,000 Unconfirmed Transactions, Driving Fees to $52

According to Cointelegraph, the network is experiencing temporary congestion due to the over 300,000 unconfirmed transactions awaiting processing on June 7.

At that time, network fees were 514 sats for high-priority transactions and 513 sats for low-priority transactions. Prices had risen to approximately 520 sats per transaction earlier in the day. This amounts to $50–$52 in fees per transaction in United States dollars. Priority fees have since decreased to approximately $46 per transaction.

According to blockchain reporter Colin Wu, the 332,000 unconfirmed transactions are suspected to result from centralized exchange OKX accumulating and sorting through wallets. However, this has yet to be confirmed as of publication.

Bitcoin Miners Face Profitability Challenges Post-Halving Amid Rising Costs and Severe Weather Impacts

The Bitcoin network has received increased attention due to concerns regarding miner profitability, high network fees, and difficulty following the halving.

At the end of April, the block reward was reduced from 6.25 Bitcoin to 3.125 BTC, which substantially affected miners' profits.

For the first complete month since the most recent halving event, Bitfarms reported a 42% decrease in mining revenue for May. In its end-of-month report, the Bitcoin mining company disclosed that it earned 156 BTC in May instead of 269 BTC in April.

Additionally, the Bitcoin miner disclosed that temperatures at its Argentina facility were exceptionally low in May, resulting in some of the most severe weather conditions observed in 44 years. The company's Rio Cuarto facility was forced to close for eight days due to unfavorable weather conditions, which decreased the total number of Bitcoin mined.

Since the beginning of 2024, Bitcoin miners in the United States have spent $2.7 billion on electricity, even though the computational difficulty has increased and the rewards have decreased.

According to analyst Paul Hoffman, Bitcoin mining in the United States has utilized an immense 20,822.62 GWh of electric power since the beginning of 2024. The analyst further stated that the energy consumption of Bitcoin miners since the beginning of 2024 could supply electricity to 1.5% of U.S. households for an entire year.

The average cost of mining a single Bitcoin was $52,000 in April. The cost of mining a single Bitcoin has more than doubled to an average of $110,000 since the halving event.

Photo: Microsoft Bing

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

Back to top
Copyright ⓒ TokenPost. All Rights Reserved.