After climbing a week ago to the level last reached in February 2018 Bitcoin’s average transaction fee (BTC) has dropped by more than half.
BitInfoCharts data shows that Bitcoin’s average rate has dropped nearly 54% from $ 6.65 on May 20 to $ 3.07 on May 25. The average rate peaked at $ 3.91 but has now dropped to $ 1.65.
Hayden Otto, advocate of Bitcoin Cash, told Cointelegraph this If network congestion persists, users are moved to altcoins. He believes this happened in 2017:
“When BTC is slowly busy with a huge delay in transactions [perderá usuarios] again. […] I am sure that most people who try to move money will convert it to a different currency before pulling out of the exchanges. “
Graph of average Bitcoin transaction fees from May 20-25. Source: BitInfoCharts
Altcoins use the overload of Bitcoin
Otto is the founder of BitcoinBCH.com and claims it There is a direct correlation between the overload of Bitcoinwhich leads to the highest rates we’ve seen lately and users switching to competing cryptocurrencies. According to him, “this causes the dominance of the BTC market to decrease as that of competing cryptocurrencies explodes.”
As Cointelegraph reported in early May, There has been considerable speculation that halving Bitcoin could destabilize the blockchain. Otto argues that halving has had this destabilizing effect on Bitcoin’s functional dynamics, although it has gradually subsided.
Said The number of unconfirmed transactions in the Bitcoin mempool has recently stabilized with just over 20,000 after having reached the highest level this year with over 80,000. Otto suggests that This is a sign that the Bitcoin network will regain stability afterwards Its economy will change as a result of the last halving recently.
May 20th Bitcoin’s mining difficulty has been reduced by 6%. Otto says this level of difficulty helps reduce network congestion, but customization may not be enough:
“We have had difficulty adjusting since halving, but it will take one or two more adjustments to adjust. Due to the reduced hash rate, blocks occur more slowly. BTC’s hash rate has dropped nearly 30% since halving, and the difficulty has dropped only 6%, so the difficulty must continue to decrease before the blocks are mined at 10-minute intervals in the middle. “”