Bitcoin Transaction Fees Soar, Crypto Community Expects Halving Bitcoin

Bitcoin transaction fees have increased ahead of Halving. (Photo; Doc. Block)

JAKARTA - Ahead of Halfing Bitcoin, the crypto community is now highlighting a surge in Bitcoin transaction fees. This coincides with the launch of the Runes Protocol which is expected to bring fresh air to Bitcoin users. With this protocol, Bitcoin users expect dramatic changes related to soaring transaction fees.

Since early April, crypto market participants have felt the inevitable impact of increasing Bitcoin transaction costs. The data raised shows that the average cost has jumped sharply to 133 satoshi per virtual byte, or equivalent to 19.48 US dollars (around Rp. 278,160) per transaction. This increase is not without reason; it is a reflection of market dynamics that is responsive to change and innovation.

Halving Bitcoin Becomes A Long-awaited Momentum

Within days, the Bitcoin community will witness a long-awaited event: halling. This process will halve the half of the prize block received by miners, a mechanism designed to maintain the scarcity of Bitcoin. On April 18, 2024, there were around 164,000 transactions or 220 blocks that were still waiting for confirmation, signaling the high number of network activity that led to an increase in transaction costs.

Since April 4, there has been a significant spike in transaction activity, with more than 450,000 transactions confirmed per day for 11 consecutive days. This trend coincided with an increase in transfer costs that began 11 days ago, surging from USD 2.86 (approximately IDR 40.860) to USD 9.09 (approximately IDR 129.780) in just three days.

In the midst of network preparation for halving, the average transaction fee on the Bitcoin network according to bitinfocharts.com peaked on April 12, with $24.39 (around IDR 348.170) per transaction. Currently, the average transfer fee is stable at 19.48 US dollars (around IDR 278.160) per transaction or 133 satoshi per virtual byte (sats/vB), with a median cost of around 11.11 US dollars (around IDR 158.570) or 75.9 sats/vB.

Inscription Ordinary And BRC20: Two Mobilizing Factors

In the past two weeks, there has been an increase in the Ordinary Inscription, and many attribute this increase in costs to the enthusiasm surrounding the launch of the upcoming Runes Protocol. This protocol is expected to be a new standard in the creation of exchangeable tokens in Bitcoin, using a different method from existing BRC20 tokens.

The Transfer of Inscription Ordinary and BRC20 tokens has been a major factor in the increase in BTC costs this year. Some analysts have even anticipated further increases following Runes' launch. Recent reports show that even the Bitcoin testnet has seen a significant increase in costs due to Runes, signaling that this change is not just a passing wind, but a revolution that will form the future of crypto transactions.