Bitcoin fees since the recent pump.

[Mia Chloe]

My question is what is the reason why mempool is currently so free?
Whereas in January, the price of Bitcoin was less than half, but the size became about 564Mvb due to the large number of transactions. Where the transaction fee went up to 400-500sat/vbyte.
And currently, I don't really understand why the transaction is so low why the mempool is not congested. So what are the reasons for the increase in transactions? Does it have a specific time or market situation?

The rate of congestion in the MEMPOOL determine how much fees would look like at that point in time. Take for example when bitcoin pumped to 89k and didn't seem to cross the 90k mark, many people were kind of certain that the pump was over which did not turn out to be true. However as a result of that, fees went up a little as people were rushing to move their funds to exchanges to sell off.

Now I'll say every one is a little bit scared of selling of at this point since it seems more like bitcoin doesn't seem to be stopping the pump anytime soon. At 100k fees will likely still go up .

[TryNinja]

My question is what is the reason why mempool is currently so free?
Whereas in January, the price of Bitcoin was less than half, but the size became about 564Mvb due to the large number of transactions. Where the transaction fee went up to 400-500sat/vbyte.
And currently, I don't really understand why the transaction is so low why the mempool is not congested. So what are the reasons for the increase in transactions? Does it have a specific time or market situation?

Well, the easy answer is that there are fewer transactions happening, so you don't have to fight over for space on the blocks. Not sure why exactly this is the case vs other periods, though. LN hasn't gotten actually easier, so not sure if one could say this is one of the reasons.

Maybe people are just trading and buying up BTC off-chain, so price goes up but that doesn't mean there will be more txs on the chain.

[rdluffy]

...

Well, the easy answer is that there are fewer transactions happening, so you don't have to fight over for space on the blocks. Not sure why exactly this is the case vs other periods, though. LN hasn't gotten actually easier, so not sure if one could say this is one of the reasons.

Maybe people are just trading and buying up BTC off-chain, so price goes up but that doesn't mean there will be more txs on the chain.

In my opinion, there's more institutional money right now

So we can assume that there are fewer transactions, but with greater value
Fewer people transacting, and more companies or entities with a lot of money

The fact that there's nothing running on the network also helps hehehe

[dwyane36]

My question is what is the reason why mempool is currently so free?
Whereas in January, the price of Bitcoin was less than half, but the size became about 564Mvb due to the large number of transactions. Where the transaction fee went up to 400-500sat/vbyte.
And currently, I don't really understand why the transaction is so low why the mempool is not congested. So what are the reasons for the increase in transactions? Does it have a specific time or market situation?

The reasons for the spikes in activity and fees on the Bitcoin network were due to various spam transactions. For example, in January, BRC-20 tokens were popular, and at the peak of activity, the number of such transactions reached 75% of the total number of transactions in the Bitcoin network during that period. After that, the activity spikes in April, May, and June were due to runes transactions, and the number of such transactions at the peak was 81%, 64%, and 61%, respectively.

[bayu7adi]

After checking the latest fee on the mempool website for bitcoin transactions, it is still at 10sat/vB... then my logic got this

Bitcoin transactions are not so dense because maybe ordinal is sluggish, there is no fee fight because buying and selling transactions are more dominant on CEX which will probably only happen internally... maybe you think that many people will start transacting their bitcoins to sell them on the exchange, but in reality the spam on the ordinal network is more terrible than this bullish moment regarding the existing fee changes.

[ABCbits]

My question is what is the reason why mempool is currently so free?
Whereas in January, the price of Bitcoin was less than half, but the size became about 564Mvb due to the large number of transactions. Where the transaction fee went up to 400-500sat/vbyte.
And currently, I don't really understand why the transaction is so low why the mempool is not congested. So what are the reasons for the increase in transactions? Does it have a specific time or market situation?

As reminder, this January is also when Ordinal starts gaining it's popularity.

--snip--
Maybe people are just trading and buying up BTC off-chain, so price goes up but that doesn't mean there will be more txs on the chain.

I agree. Some newer investor/buyer use ETF rather than buying on exchange and withdraw to their wallet.

[Mate2237]

 Yes if when I started the journey, the mempool was free but when it came to the bear market in 2022, the mempool space was congested and the fee was very high. And when the price of bitcoin reached $20k and above then the transaction fee became low again until when the bull run started in the month of match and April 2024 then the transaction fee was something else at of that time but it is really a surprising to me as well when the fee is low now that it is the All Time High. And this is how it should be and if it is possible, it should still reduce more.

We are still expecting to hit $100k before the end of the year or the first quarter next year is the $100k expectation.

[Bobcrypto]

Bitcoin transactions fees since last the one month is great, it is amazing at this current bull run for a low fees experiences. I hope that this trends may continue in the new year to encourage more buyers,
The current low fees is my first experience seeing a bullish market on a fascinating low transactions fees, it surely boost new investors, traders, holders  to add more BTC to their wallet.

[satpol_PP]

Bitcoin transactions fees since last the one month is great, it is amazing at this current bull run for a low fees experiences. I hope that this trends may continue in the new year to encourage more buyers,
The current low fees is my first experience seeing a bullish market on a fascinating low transactions fees, it surely boost new investors, traders, holders  to add more BTC to their wallet.

If the cost remains low even though the market is moving up and this will last until next year of course it will be very good for us crypto lovers. because with a low gas fee we can make transactions without feeling burdened by the gas fee like before. but will this last long?
Because usually when traffic is high, the gas fee will increase. but we don't need to worry there are many network options that we can choose from.
Currently we can choose Solana, BSC, TON, TRX and others. so the more network options make it easier for users to choose the network they want with lower gas fees.

[dkbit98]

Well, the easy answer is that there are fewer transactions happening, so you don't have to fight over for space on the blocks. Not sure why exactly this is the case vs other periods, though. LN hasn't gotten actually easier, so not sure if one could say this is one of the reasons.

I think most people are not moving their coins and they are waiting to see how high price can go.
All this companies and rich individuals investing and buying bitcoin are not buying coins with onchain transactions, instead they are using third party custodians.
I noticed the trend for more people to use Monero for transactions and Bitcoin only for holding.

[Kemarit]

Bitcoin transactions fees since last the one month is great, it is amazing at this current bull run for a low fees experiences. I hope that this trends may continue in the new year to encourage more buyers,
The current low fees is my first experience seeing a bullish market on a fascinating low transactions fees, it surely boost new investors, traders, holders  to add more BTC to their wallet.

The fees is also very inconsistent, right now it's big, 20 sat/vB. So you really have to time the market and see where the fees are. The price of Bitcoin is still at $92,000, so just imagine if we hit that 6 digits that we want.

So you can never know if we will still have lows fees once we hit $100,000 or it will go up coincide with the recent spike in the price. And I do not think that investors are selling at this point, for us, it's better to just continue to HODL and see how big this bull run will be.

[bayu7adi]

Bitcoin transactions fees since last the one month is great, it is amazing at this current bull run for a low fees experiences. I hope that this trends may continue in the new year to encourage more buyers,
The current low fees is my first experience seeing a bullish market on a fascinating low transactions fees, it surely boost new investors, traders, holders  to add more BTC to their wallet.

unfortunately, it also drives a lot of selling transactions too... when there was a dust attack from the ordinal network, I never transferred my BTC to an exchange to sell... if that happened to you until today, I definitely wouldn't sell it either when the bitcoin price was $80k and $85k... the profit I got was probably 5%-10% more than yesterday...

the point is I'm still grateful because I'm still in a lucky condition... cheap transaction fees, of course a good signal for p2p transactions to be more alive, and overall it's not bad for me if I see it being adopted more widely.

[SamReomo]

What's your opinion about the fees so far?

As far as I understand, the investors are willing to hold their investment for a least a year and that's the reason why the fees aren't going high. However, as we all know that new transactions are taking place each day and that's the reason why fees have gone high a little bit.

[TomPluz]

Majority of the people who got some Bitcoin are not moving their assets to any exchange and that contributes a lot why there seems to be no major congestion even when BTC price is already in the $90K zone. now, this might change a lot when Bitcoin can be able to reach the $100K level as there might be a big number of people that may convert their BTC to cash or other digital assets. But then let's see...because there is also a big possibility that holders may look at $150K as their future threshold for moving their BTC. As we are heading the end of 2024 and looking excited of what can be in 2025 with the new Trump administration coming in to govern USA, there is that strong reason for the cryptocurrency to be bullish.

[BitcoinGirl.Club]

As far as I understand, the investors are willing to hold their investment for a least a year and that's the reason why the fees aren't going high. However, as we all know that new transactions are taking place each day and that's the reason why fees have gone high a little bit.

I have not seen those ordinals are messing around the chain so far. As soon as they will start messing around, we will see huge congestion. I have not followed the progress too so not sure what's going with these ordinals.