CDS Crypto News Bitcoin Halving Sparks Dramatic Drop in Transaction Fees
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Bitcoin Halving Sparks Dramatic Drop in Transaction Fees

After the halving, transaction fees surged to $146 for a medium-priority transaction and $170 for a high-priority one.

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Bitcoin Halving Sparks Dramatic Drop In Transaction Fees

Crypto News- This week, Bitcoin (BTC) has maintained a stable position, trading above the $65,800 mark, a relief for many investors after the recent halving event. A significant development following the halving has been the substantial reduction in transaction fees.

Bitcoin Halving Sparks Dramatic Drop in Transaction Fees

According to on-chain data from Mempool.space, medium-priority transactions are currently priced at $8.48, while high-priority transactions cost $9.32. This stands in stark contrast to the immediate aftermath of the halving, where fees soared to over $146 for medium-priority transactions and $170 for high-priority ones.

Moreover, the hashprice index, a metric devised by Luxor to gauge a miner’s expected earnings from a given amount of hash rate, has plummeted from $182.98 per hash/day to $81 post-halving. This dip in profitability falls below pre-halving levels, as miners brace themselves for reduced revenue streams.

Initially, hopes were high among miners that Casey Rodarmor’s Runes protocol, aimed at creating fungible tokens on the Bitcoin blockchain, would offset the impact of the halving by stimulating on-chain activity. However, the reality has been quite different.

Runes Protocol Launch Disappoints: Runestone NFT Floor Prices Plummet by 50%

The launch of the Runes protocol coinciding with the halving was anticipated to inject vitality into on-chain activities. However, the aftermath has seen the floor prices for the runestone NFT collection drop by almost 50% within the last 24 hours, with a floor price now hovering around 0.037 BTC, according to data from Magic Eden.

In contrast, other NFT collections like Bitcoin Pullets and NodeMonkes have witnessed an uptick, with gains of 11% and 8% respectively, as reported by CoinGecko. Notably, while these collections also generate substantial transaction fees, they haven’t emerged as the anticipated revenue source that many had pinned their hopes on for Runes.

As the Bitcoin ecosystem continues to navigate the post-halving landscape, miners and investors alike are closely monitoring developments to gauge the long-term implications on profitability and blockchain activity.

Bitcoin Halving Sparks Dramatic Drop In Transaction Fees

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