Bitcoin Transaction Fees Plunge Breaking 2018 Record, Same For Mempool Queue

Bitcoin Transaction Fees Plunge Breaking 2018 Record, Same For Mempool Queue

Long waiting transaction time and high fees have been a bottleneck in bitcoin network for quite a long time. Critics have been using these arguments as an opportunity to jam up the most known cryptocurrency in the world and promote altcoins.

Experts explain the emergence of these phenomena by a desire of a larger number of people to pile into BTC for making profits instead of using it as a payment method. Therefore, bitcoin’s network has become overloaded and strangely clumsy. But things are getting much better nowadays, leaving skeptics without reasons for lashing.

Faster Transactions After All-Times Anti-Records

According to Johoe's Bitcoin Mempool Statistics, there were over 250,000 unconfirmed bitcoin transactions waiting in the mempool in mid-December, 2017. This result was the all-time anti-record for bitcoin. Since the beginning of 2018 things got better, but not that much. Within the first weeks of January, there were 125,000-175,000 waiting transactions.


However, the change was set to come after January 20. After this day the waiting time started reducing step-by-step, leading to only 25,000 transactions anticipating for verification. Finally, on January 30, there were only slightly above 10,000 transactions in the mempool, which is a result that bitcoin has not seen since November 2017.

It is also notable that the mempool size diminished to 40-60 MB in comparison to 250-300 MB, which was relevant within the first weeks of January.


Lower Fees Amid SegWit Continuing Adoption

But most importantly, within the past few weeks, the bitcoin transaction fees started significantly reducing as well. As it is mentioned on bitinfocharts.com, the fees started sweepingly dropping after January 20, when the median transaction fee cost $12.21. At the moment of writing, the rate was fixed at around $4.8. That is an excellent outcome as just one month ago on December 23 one had to pay $34 for a transaction. Bitcoin users have not enjoyed such low fees for about two months.


Such shearing could have been triggered by a more extensive adoption of Segregated Witness solution. On January 28, the percentage of SegWit-transactions within bitcoin’s network reached the record of 18.3%. Currently, the use of SegWit transactions is stabilized at 14%.


Nevertheless, it is also important to remember that these factors are also tied to bitcoin’s price. As we can see, when bitcoin soared to $20,000 in the mid-December, both the number of transactions in the mempool and transactions fees went high, as more people started selling it out energetically to make profits. Hence, the network appeared to be loaded. On the other hand, currently, these indicators are going down amid bitcoin’s price decrease.

Charts Sources: dedi.jochen-hoenicke.de; bitinfocharts.com; segwit.party.

Bitcoin’s Volatility? In 2017 BTC Was More Stable Than In Its Early Days
Despite some 30% crashes in 2017, bitcoin managed to increase by total 1,400% last year, conquering the world’s financial stage. Banks are becoming...
Stablecoin - Everything You Need to Know
What Is A Stablecoin? You must have heard of cryptocurrency which has been the recent talk of the town. Well, stablecoins are a form of...
Gold Pulls Bitcoin Investors From BTC, Says Van Eck Associates CEO
In 2017-2018 bitcoin bit gold as bait for investors. However, the situation is expected to change in 2019 as investors already hope more for the gold...
Crypto-Supporter Milne Said Bitcoin’s Only Ledger to Last 100 Years
As bitcoin continues trading approximately Twitter thread entrepreneur Alistair Milne forecasted that the upcoming cyber money bull will decide which...
Increased Supply of Altcoins Will Depress Bitcoin, Says St. Louis Fed Report
As it is known, crypto-supporters (bitcoin bulls) widely believe that the increase in the capped supply of all cyber-coins will boost bitcoin’s value...
BTC Market Cap Will Surpass $7 Trillion Gold Cap, Say Winklevoss
Recently, Tyler and Cameron Winklevoss, world-known entrepreneurs and early supporters of cryptos, have taken part in Reddit’s traded at $4,061 and...
Crypto-Community Celebrates Bitcoin’s 10th Birthday
This year’s January 3 marks a decade since the first bitcoin block was generated by Satoshi Nakamoto. Back then, in 2009, this person (or group of...
Best Bitcoin Memes in 2018: ‘Hodling’ and Crying
2018 has not been an easy year for bitcoin, not at all. Whereas it left 2017 at the price of $10,000, it started the new year in a pretty bullish...
Bitcoin Hits $4,190 For The First Time Since Early December
For the first time in a fortnight, bitcoin has managed to creep above the $4,000-margin. As of writing, the king of all cryptos is traded at $4,031...
Bitcoin Surpasses $3,500 on the Anniversary of the $19,000 Record
Today, December 17 marks an anniversary since bitcoin hit the $19,000 high for the first time ever. Moreover, this day marks a petty recovery of the...