Bitcoin [BTC]: On-chain transactions near ATH as miners profit from rising transaction fees
Bitcoin [BTC] has recorded a successful 2019, with the king coin rallying towards a $6000 valuation. As previously reported, Bitcoin [BTC] had also recorded a six-month high hashrate of $58.11 million TH/s, which was extremely close to its all-the time high of 61.8 TH/s.
According to Diar Research, average Bitcoin transaction fees rose by a massive 200% in April, as the block size reached all-time high, crossing 1MB with ease.
SegWit also accounted for high utilization in the network, keeping the fees marginally suppressed.
Bitcoin [BTC] miners profited from the rising transaction fees as it was revealed that the miners earned $291 million in April, a 30 percent increment over the earnings of the previous period.
In April, the valuation of Bitcoin [BTC] improved by 43 percent and resulted in fuller blocks on the blockchain.
As the chart suggests however, SegWit, the scaling solution that addresses the issues of fuller blocks, also experienced high usage as the mechanism used by the blocks averaged about 35 percent, dampening the fee pressure due to the high hashrate.
Additionally, on-chain transactions for Bitcoin closed in on its all-time high of 11.2 million transactions, witnessed in December 2017. This was a significant development, considering the fact that on-chain transactions had reached an all-time low in February 2019.
According to Diar, at SegWit’s current rate of usage to suppress fees, the utilization rate could go up to 300 percent if on-chain transactions continue to mirror the rates of December 2017.
However, fees should still be relatively cheaper when compared to December 2018 when the cost went up to 500 Sat/byte. This implied that the objective behind the use of SegWit was working as intended, without any major complications.
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