Bitcoin fees are skyrocketing ahead of Bitcoin halving Bitcoin fees are skyrocketing ahead of Bitcoin halving


Bitcoin fees are skyrocketing ahead of Bitcoin halving

updated on:10 May 2020

The average fee for transacting on the Bitcoin network hit $2.94 on April 30th - the highest in ten months.

Bitcoin’s mempool shows a data backlog that will take hours to clear.

As the network becomes congested, users must pay higher fees to make it into the next block - thus driving up fees.


The average transaction fee on the Bitcoin blockchain has hit its highest level in 10 months. Data from Bitinfocharts shows that Bitcoin fees spiked to a high of $2.94 on April 30—a level not observed since July 2019.

Twenty-four hours earlier, average fees were perched around the $1.28 range. One day earlier still, the average fee was as low as $0.66. But on Thursday night, fees increased by 129% to the ten month-high. 

Average Bitcoin fees rose to $2.94 on April 30th - the highest level witnessed since July 2019
Image: Bitinfocharts

Despite the sudden spike in the past few days, average fees on the Bitcoin network were on the rise all throughout April. From April 1st to April 30th, average fees increased by 673%.

Mempool data from shows a massive backlog of Bitcoin transactions awaiting confirmation. The mempool represents the amount of data (in the form of transactions) that still have to be confirmed and processed by Bitcoin’s miners. 

Bitcoin’s unconfirmed mempool spiked to 80MB on April 30th

These mempool backlogs invariably result in higher transaction fees, as users attempt to outbid each other to have their own transactions included in the next block. During Bitcoin’s all-time high in December 2017, transactions took days to confirm, and average fees spiked to over $55.

High fees, while not ideal in any situation, can be viewed as an increase in demand for space on the Bitcoin network. With the Bitcoin halving just over a week away, and as the economy remains uncertain in light of the COVID-19 lockdown, the surfeit of demand could be a good thing.

Conversely, critics may point out the inefficiency of having a digital payment system where payments take several hours to confirm. Such high fees make Bitcoin useless for micropayments, for instance.

Transaction speeds on Bitcoin are partly limited by its 1MB block size. The current 67MB backlog displayed on will have to be cleared one block at a time before fees revert to normal levels. Based on Bitcoin’s ten minute block times, that could take in excess of ten hours.

Share this Blog with your friends


No Comments

Suggested Content

Bitcoin 'Doesn’t Fulfill Basic Properties of Money': ECB Board Member

updated on:10 Apr 2021

Isabel Schnabel, Member of the Executive Board of the European Central Bank (ECB), has described Bit

Continue Reading

Bitcoin ETF Approval Will Happen: Morgan Creek’s Mark Yusko

updated on:9 Apr 2021

Morgan Creek Capital Management CEO Mark Yusko has expressed his confidence that a Bitcoin ETF will

Continue Reading

Ukrainian Officials Own $2.67 Billion in Bitcoin: Report

updated on:9 Apr 2021

Civil servants and officials in Ukraine are holding a significant amount of Bitcoin (BTC) and other

Continue Reading

JP Morgan's Jaime Dimon: Bitcoin Regulation a ‘Serious Emerging Issue’

updated on:8 Apr 2021

The legal and regulatory status of Bitcoin and other cryptocurrencies is something that needs to be

Continue Reading

Bitcoin Toys With $60k, BNB Hits All-Time High and Ethereum Creeps Past $2,000

updated on:3 Apr 2021

It’s all systems go for the crypto market.  Binance Coin hit a new all-time high of $3

Continue Reading