Total fees for Bitcoin Chain (BTC) transactions in the last 24 hours have increased more than 50% compared to yesterday.
The on-chain data analysis service Glassnode pointed out some important developments that prove the blockchain data from Bitcoin. According to the company, all Bitcoin fees have been paid in the past 24 hours elevated by 50.7% to more than USD 9,500. Also the average Bitcoin fee paid by users elevated at 58.8% and hit USD 0.78.
Meni Rosenfeld, president of the Israeli Bitcoin Association, told Cointelegraph that he believed that 24-hour tariffs are too short to be particularly significant. He noticed that Historical data shows that Bitcoin’s transaction fee rate is more volatile than the price of the asset itself. Still, he noted that a sustained trend would become more important:
“If the trend continues, a slight rise in interest rates can be a positive sign. It means that people are really willing to pay these fees. In other words, Bitcoin is becoming increasingly popular and used. This can be done with price increases and the introduction of Bitcoin. However, If interest rates are too high, this is not a healthy sign. This would mean that Bitcoin’s technical infrastructure is not scaledThis makes it more difficult for people to benefit from Bitcoin and limits the potential of Bitcoin to have positive effects. “
Rosenfeld also pointed out that the level of Bitcoin fees is not the only metric to be observed. He believes that we should also pay attention to its variability. He explained:
“Rapidly changing rates make it difficult to plan ahead and make optimal use of Bitcoin. There are some technical suggestions, such as “elastic block cap capitalizations,” that I have been advocating that are aimed at addressing this. “
Interest rates are expected to rise in the long term
Rosenfeld also explained that In the long term, transaction fees in the chain are expected to increase. Still, he noted that the cost of issuing Bitcoin may not increase thanks to the introduction of second-tier solutions like the Lightning Network.::
“In the long run, the chain transaction fee should increase, but that doesn’t mean the bitcoin payment fee needs to increase. As bitcoin grows, we’ll see a greater dependency on second-tier solutions like the Lightning network The fee for each payment in the second shift can be very cheap, but the on-chain transaction that opens a channel is more valuable and therefore more expensive. “
According to Rosenfeld “There is a delicate balance regarding the optimal tariff level.” If the prices are too low, the miners will not receive enough money. If they are too high, Bitcoin’s utility will be rejected. He concluded:
“Rates are generally low at the moment, so an increase can be a positive sign. However, if they are too high, we need to think seriously about new scale solutions.”
Many traders have become increasingly optimistic about Bitcoin as the halving of the block reward is approaching. As Cointelegraph reported earlier today, Bitcoin-Hodler is currently collecting $ 530 million in coins a day.
A Bloomberg report yesterday found that Bitcoin is preparing for an upward trend that is reminiscent of the upward trend in which the cryptocurrency occurred in 2017.