Bitcoin (BTC) Trades in a 3-Month Price Range with a Yearly Low Exchange Volume and an All-Time Low On-Chain Volume. Yet, Bitcoin’s 24-Hour Average Transaction Fees Reached a New All-Time High of $195 on June 8, at Block Height 847015

Bitcoin average transaction fees historical data Putting in perspective, the network reached a previous high of $127.97 per transaction on April 20

Bitcoin (BTC) average transaction fees reached a new all-time high of $195 on June 8, at block height 847015, according to data retrieved by Finbold from the mempool.space node, which shows statistics from the last 144 blocks (approximately 24 hours).

During this period, miners received 821.46 BTC, valued at $57 million, with an average of 2.5796 BTC per block ($179,029). This drove the daily average transaction fee on the Bitcoin network to 281,030 sats ($195). Sats refer to the smallest BTC unit, named after the cryptocurrency creator Satoshi Nakamoto.

Essentially, the latest data shows that the last 144 Bitcoin blocks only included transactions with this average extra payout to miners. Putting it in perspective, the network reached a previous high of $127.97 per transaction on April 20, during the halving. Before that, the network saw average fees above $60 for the first time in April 2021, during the bull cycle.

On June 7, data from BitInfoCharts showed a daily peak at $83.74 per transaction. Notably, Vini Barbosa registered a previous average of $65.76 at 10 pm UTC, in a post on X.

If you want to buy a BIG MAC with Bitcoin (BTC).It will cost you the price of 12 BIG MACs right now.*The Big Mac Index (U.S.) at $5.69 : @TheEconomist **BTC average transaction fees at $65.76 (Jun/07) : @mempool Not that much of "freedom money," is it? pic.twitter.com/HCy6UgzSxB

At current average transaction fees, millions of addresses and Bitcoin users cannot spend their coins, which are considered dust.

Elsewhere, data from multiple on-chain analytics platforms showed a daily average transaction fee of $83.74 on June 7, a significant increase from the previous day’s average of $65.76. Notably, the recent hike in average transaction fees on Bitcoin began around June 5, when the fees started rising sharply from an average of $53.

In the meantime, a recent analysis by Santiment highlighted that Bitcoin on-chain transaction volume reached all-time lows on June 2, as spot trading interest faded.

The seven-day moving average of on-chain transaction volume stood at 474,000 BTC at the time, while spot trading volume also showed fading interest.

On the other hand, ETFs and derivatives saw a lot of demand, especially among those looking to speculate on the BTC market, as highlighted by the crypto analytics firm.

OKX consolidation spiral spotted by on-chain analysts

In another development, Bitcoin on-chain analysts spotted a UTXO consolidation spiral from the crypto exchange OKX.

OKX now has 974 consolidation transactions left in the mempool, with the following combined stats:

– 42.4 MvB total vsize

– 146100 inputs

– over 57 BTC in fees

– recovered value of 730 BTC https://t.co/GR2HIRXs9q

According to multiple sources, the recent average transaction fee hike on Bitcoin is caused by OKX outbidding itself while paying higher fees for each transaction.

Technically, Bitcoin fees increase when there is more demand for a limited space on its blockchain. Thus, users compete and outbid each other to convince miners to include their transactions in the next block. The more congested and demanded the Bitcoin network is, the higher the fees can go.

The BTC protocol is currently intentionally designed to have a small block size and a 10-minute time interval between each block. Other cryptocurrencies solve the fee issues in different ways. For example, Bitcoin Cash (BCH) increased the block size, Litecoin (LTC) diminished the block interval, Monero (XMR) mixed both, and Nano (XNO) securely removed fees from the equation.

As Bitcoin fees now reach an unprecedented value in dollars and the risks of a sell-off become imminent, the market awaits to see if the demand for block space will drop and the average cost will follow to lower levels.