Bitcoin's average transaction fees are down 83% from their halving peak, but are still up 277% since the start of the year

According to BlockBeats, the average transaction fee for Bitcoin has fallen to its lowest level since April 28. The average cost of sending a bitcoin transaction is now just $1.083, according to OKLink, the OKLink cloud chain.

Two weeks ago, on May 20, the average cost of a bitcoin transaction was $6.647. That's the highest average fee in nearly two years -- not since July 2018. That means average bitcoin transaction fees have fallen 83.7 percent since May 20.

After bitcoin halved in May, miners' profits plunged and the network became congested as some older miners were phased out. Demand for bitcoin transactions soared as some thought the price would halve before rising. But the hash rate on the bitcoin network has soared in the past few days, confirming the emergence of new and more powerful bitcoin miners, meaning there are enough miners on the market to handle the current demand for transactions.

While bitcoin's average transaction fee is now more than 80% below its level on May 20, it is still well above where it was at the start of the year. On January 1, the average cost of sending a bitcoin transaction was just $0.287. That means today's transaction costs are still 277% higher than on January 1st. But if the current downward trend continues, average transaction fees could return to where they were at the start of the year.

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