According to data from investment research platform YCharts the average transaction cost of the network (BTC), dropped by 57.97% to $4.40 from $1.80 in this year.

A number of factors may have contributed to the network’s lower transaction costs. One reason could be the rapid growth of Bitcoin Lightning Network. Transactions can be done off of the blockchain.

On April 21, the average Bitcoin transaction fee reached $62.8 per transaction, an unprecedented high. It was mostly due to block production slowing down in China during high demand.

Second, the fees are lower due to less skepticism from Bitcoin miners. This is because miners still have an interest in processing transactions. The mining difficulty is a measure of how difficult it can be to verify a Bitcoin transaction.

The lower fees may also have been due to the decongestion in the mempool (the collection of all transactions that are pending confirmation). The mempool stores all transactions to Bitcoin networks until confirmation is received. As each block of Bitcoin has an exact 1MB size, a large mempool could encourage miners support more profitable transactions.

Blockchain.com has provided a graph showing that Bitcoin’s mempool was well below its maximum size.

One reason transaction costs have dropped is because of the lower demand for Bitcoin. This causes the token cost to drop, which in turn reduces transaction fees.

In recent months, however, transactions have seen a drop in average volume. The average daily transaction count was more than 350,000 at the start 2021. However, the average daily transaction rate has fallen to 250,000 to 213,000 per day.

The fees also fell along with the rest the crypto market. At $69.92, the average transaction fee for Ethereum reached its peak on May 12, 2021. As of press time, however, it has fallen to $4.90.

BTC PEERS also reported that Bitcoin rose by more than 7% Sunday. This puts the bulls in control and kicks off the week after an extremely turbulent weekend.

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