Cryptocurrencies have been scaling some unchartered waters as of late, with huge dips and humbling ticks in the past 3 weeks defining the struggle of digital coins, such as Bitcoin and Ethereum, struggling to break past their resistance levels.
According to the data from blockchain analytics platform BitInfoCharts, the average Bitcoin transaction fee is now 0.0002 BTC, roughly equal to 7 dollars.
In principle, the BTC blockchain charges a standard fee for each transaction, the proceeds of which are distributed among miners. As the historic data of the coin suggests, fees rise when demand for processing transactions increases.
Similarly, fees fall when there’s little demand, and this is the current situation for BTC traders, who’re just not interested in scheduling transactions during times when the market looks uncertain. To put things in perspective, the average fee for BTC on 21st April was $62.8 per transaction. At the time of writing this post, the average transaction fee of the coin is $7.28, almost down by 88%.
Overall, all crypto prices and fees are feeling a little under the weather, owing to government crackdowns in China, where most of the world’s miners are located.
It is pertinent to mention here that crypto exchanges such as OKEx and Huobi have begun limiting certain crypto transactions, while Decrypt has pointed out that Mongolian authorities might go for a complete ban on Bitcoin in the near future. In this regard, analysts expect the crypto streets to feel nauseous, and honestly, they’re not to blame.