Quick Take

As the highly anticipated Bitcoin halving draws near with just over 70 blocks remaining, and with the launch of Runes expected to go live on block 840,000, the Bitcoin market is witnessing a significant shift in transaction fees.

CryptoSlate has extensively covered the gradual increase in Bitcoin fees throughout April, and according to Glassnode, for four consecutive days, Bitcoin fees have surpassed those of Ethereum. This dominance of Bitcoin fees was last observed during the period from December 2023 to January 2024, which lasted roughly 20 consecutive days.

 

Fees: ETH vs BTC: (Source: Glassnode)

With the halving set to commence at block 840,000, the block reward will drop from 6.25 BTC to 3.125 BTC. As fees continue to rise, many users, including myself, have started consolidating their UTXOs in anticipation of higher transaction fees.

Interestingly, Mononaut, a developer at Mempool, confirmed that an entity overpaid for a transaction in block 839920. According to mempool.space, the overpayment was 1269 times the fee rate which came to a total of 105,512 sat/vB, translating to a staggering fee of $17,468. The mining pool ViaBTC was the lucky recipient of this transaction.

Bitcoin Transaction: (Source: mempool.space)

As the halving approaches, with just over 70 blocks remaining, Bitcoin hovers around $65,000.