Bitcoin Transaction Fees At Extremely Low Levels Amid Price Rally, A Bullish Signal? | Bitcoinist.com

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Even though Bitcoin’s price has pulled back slightly from its recent all-time high, the flagship crypto asset continues to demonstrate bullish traction. During this significant upward performance in the past few weeks, there has been a persistent decline in the network’s transaction fees.

Low Bitcoin Transaction Fees During Price Spikes

Bitcoin appears to have its footing above the $109,000 mark, showing strength for more gains. As BTC continues to demonstrate strength above this level, an unexpected dynamic has unfolded in the network. Alphractal, an advanced investment and data analytics platform, reported that Bitcoin network transaction fees (Fees Total and Fees Mean in USD) have reduced sharply to extremely low levels

Related Reading: Bitcoin Network Activity In Bear Market Zone—Warning Or Opportunity?According to the on-chain platform, public interest in the main blockchain has never been lower, despite Bitcoin holding strong above key support levels. Currently, the cost for every on-chain transaction on the network, regardless of the amount being transferred, is not more than $1.5.

In the past, increased network congestion and higher fees have frequently accompanied growing Bitcoin values, especially with the asset reaching new highs until the 2021 market cycle. However, this time around, the pattern seems to have completely separated, making the development a crucial one to watch in the current market trend.

BTC transaction fees drop to new lows | Source: Alphractal on XWhile it might seem worrying, this substantial decline in transaction fees may indicate higher network efficiency. Nonetheless, it gives BTC’s present market behavior an interesting new layer as the flagship asset’s price grows.

Furthermore, Alphractal highlighted that there has been a steady decline in the number of transactions on the Lightning Network, which suggests that the network’s use for P2P payments and transfers has sharply decreased

A Growing User Sentiment In Alternative Chains

Another critical trend spotted by the platform is a shift in network adoption from BTC to other chains. During the period, there has been a large use of Centralized Exchanges (CEX) and alternative networks like TRON (USDT), which provide practically instantaneous and nearly free transactions

Related Reading: Bitcoin Flashes Historic Bull Market Golden Cross To Trigger ‘Flash Sale’A recent report from Kyle Doops, a technical expert and the host of the Crypto Banter Show, reveals that TRON Total Value Locked (TVL) has risen sharply. Kyle Doops stated that the surge in TRON’s TVL reflects what its users are feeling while urging them to keep an eye out for a turn.

Such a development implies that transactional usage has moved to alternative networks and second-layer solutions, while Bitcoin is consolidating more as a store of value. This marks a pronounced change in market dynamics.

At the time of writing, Bitcoin’s price was facing growing bearish pressure and trading at $109,175, demonstrating a nearly 1% decline in the last 24 hours. Data from CoinMarketCap shows a brief uptick in trading volume, which has increased by over 7% in the past day.

BTC trading at $109,430 on the 1D chart | Source: BTCUSDT on Tradingview.comFeatured image from Getty Images, chart from Tradingview.com Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.