Skip to content

Bitcoin transactions reach record-breaking levels despite rising fees

Bitcoin transactions reach record-breaking levels despite rising fees

Although the transaction fees per Bitcoin (BTC) block have gone up, this did not seem to prevent investors from trading the flagship decentralized finance (DeFi) asset, which has witnessed a major uptick in daily transactions, reaching a new all-time high (ATH) and breaking the record set over five years ago.

Indeed, Bitcoin hit a new record of 682,280 daily transactions on May 1, which is an increase of 255% compared to its previous ATH of 192,000 reached on December 14, 2017, according to the chart shared by Pedro M. Negron, a research analyst at the blockchain analytics platform IntoTheBlock on May 3.

Bitcoin daily transactions. Source: Pedro M. Negron / IntoTheBlock

As visible from the chart, Bitcoin transactions began to record spikes in late April 2023 after moving up and down, but not outside the region between 160,000 and 320,000 transactions since the chart begins these measurements – in August 2021. On May 1, 2023, these transactions have seen a massive surge.

Rising transaction fees

At the same time, the Bitcoin transaction fees per block have increased recently, as observed by technology expert and associate professor at the Pennsylvania Harrisburg University of Science and Technology Farooq Anjum, who said the growth in fees was necessary for the process of the Bitcoin halving in his tweet on May 2. Specifically:

“The total txn fees per block need to go up to account for the halving in order to justify the cost of mining if the Bitcoin price does not double by next year.”

As it happens, the total Bitcoin transaction fees have been steadily increasing since late April, witnessing a stronger upwards push since the beginning of the fifth month of 2023, as Anjum demonstrated with a chart created using the cryptocurrency analytics platform Dune Analytics.

Bitcoin transaction fees Source: Farooq Anjum / Dune Analytics

Bitcoin price analysis

Meanwhile, the maiden crypto asset was at press time trading at the price of $28,662, up 1.89% in the last 24 hours, 1.10% on the week, and 1.51% across the previous 30 days. Since the year’s turn, Bitcoin has gained 72.27% to its price.

Bitcoin year-to-date (YTD) price chart. Source: Finbold

It is also worth mentioning that Bitcoin’s monthly accumulation indicators have started to show an uptrend for the price, and a pseudonymous crypto market expert Seth has predicted a ‘glorious’ 2025 for the largest digital asset by market cap.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.