Bitcoin, the flagship cryptocurrency, has hit a new all-time high in daily transactions despite rising transaction fees. Bitcoin logged 682,280 daily transactions on May 1, up 255% from its previous ATH of 192,000 transactions obtained on December 14, 2017, according to a chart shared on 3rd May by Pedro M. Negron, a research analyst at the blockchain analytics platform named ‘IntoTheBlock’. The number of transactions for Bitcoin has been fluctuating between 160,000 and 320,000 since August 2021 before this enormous increase.
Rising Transaction Fees Explained
The transaction costs per block have also just increased at the same time. This increase in fees, according to Farooq Anjum, an associate professor at Pennsylvania Harrisburg University of Science and Technology, is required for the halving of Bitcoin. Anjum stated in a tweet sent out on May 2 that “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.” Anjum showed that the overall transaction fees had been rising consistently since late April, with a sharper upward push commencing in early May.
Bitcoin Price Analysis
At the time of publication, the price of bitcoin was $29,107, up 0.22% for the previous 24 hours, 2.35% over the past week, and a change of 4.59% over the previous 30 days. The value of Bitcoin has increased by more than 70% since the beginning of the year. It is important to note that the price of Bitcoin has begun to rise according to its monthly accumulation indicators, and an anonymous crypto market analyst named Seth has prophesied a ‘glorious’ 2025 for the largest digital asset by market cap.
Investor attitude towards Bitcoin is still positive despite the increased transaction costs. The rise in daily transactions indicates that more people are utilizing cryptocurrencies for trade and investment among other things. Since the beginning of the year, Bitcoin’s price has risen sharply, suggesting that investors have been purchasing the cryptocurrency despite the transaction costs.
Despite growing costs, Bitcoin’s daily transaction volume has increased to a new record high, demonstrating that investors’ outlook for the cryptocurrency is still positive. The halving that took place in 2020 must be explained and the increase in transaction fees must be supported by the mining expense. The rise in the price of Bitcoin since the beginning of the year implies that investors are still upbeat about its possibilities. The performance of Bitcoin in the upcoming months and years is still uncertain, despite the fact that its monthly accumulation indicators are currently displaying an upward trend.