The total fees paid for on-chain Bitcoin (BTC) transactions over the terminal 24 hours increased over 50% since yesterday.

On-concatenation data analytics service, Glassnode, pointed out several major developments shown by Bitcoin's blockchain data. According to the house, full Bitcoin fees paid over the final 24 hours increased by fifty.7% to over $9,500. Furthermore, the Bitcoin mean fee paid past users increased by 58.8%, reaching $0.78.

Meni Rosenfeld, the Chairman of the Israeli Bitcoin Association, told Cointelegraph that he believes 24-hour fees show besides brusque a timeframe to exist specially significant. He pointed out that historic information shows that the Bitcoin transaction fee charge per unit is more volatile than the asset's price itself. Still, he noted that if the trend connected it would acquire more than significance:

"If the tendency continues, a balmy increment in fees tin can be a positive sign. It means people are actually willing to pay those fees — in other words, Bitcoin is increasing in popularity and usage. This can correlate with increases in the Bitcoin price and adoption. If the fees rise too much, though, information technology's not a healthy sign. Information technology would hateful that the technical infrastructure of Bitcoin is declining to scale, making it more hard for people to benefit from Bitcoin, and stifling Bitcoin'south potential to have a positive impact."

Rosenfeld besides pointed out that the size of Bitcoin fees is not the merely metric that should be observed. He believes we should also pay attending to their variability. He explained:

"Apace changing fees make it harder to programme ahead and brand the most out of Bitcoin. There are some technical proposals, such as 'elastic block caps' which I've been advocating, which seek to accost this."

Citing mempool statistics from German computer scientist Jochen Hoenicke, Oobit CEO Amram Adar noted that "there's a loftier correlation betwixt a rise in network fees and an increment in Bitcoin price," calculation:

"The concluding two periods in which the network suffered from loftier fees were betwixt April and July 2022 where Bitcoin price rose from $four,200 to $13.800 and in December 2022."

Bitcoin pending transaction fee

Bitcoin pending transaction fee. Source: Jochen Hoenicke

Furthermore, Adar said that subsequently the halving-induced Bitcoin speculation craze cools off, he expects fees to return to their usual values. Nevertheless, he admits that if Bitcoin sees another bull run, then the higher-than-usual fees could last longer. Lastly, he noted that high fees may not be all that positive for Bitcoin in the curt term:

"In the short-term, the rise in network fees could crusade a problem for consumers, mainly since information technology'll exist hard to perceive them as justified. It could, perhaps, lead them to shift to other cryptocurrencies, with lower fees and higher transaction speeds, once the media hype over the halving effect stabilizes. "

Diego Gutierrez Zaldivar, the CEO of blockchain firm IOV Labs, had a more positive view on rising Bitcoin fees. He explained that high fees generally betoken a high book of transactions, which he finds unsurprising, given the interest in Bitcoin spurred by the ongoing pandemic and the government'due south inflationary measures:

"Bitcoin'south scalability bug, which includes the trouble of keeping transaction fees depression, are well known. However, Bitcoin remains resilient every bit a neutral shop of value, which is why Bitcoin-based sidechains and offchain payments solutions continue to build out a financial system from its foundational layer."

Rosenfeld also explained that in the long term, on-chain transaction fees are expected to rise. Still, he pointed out that the cost of spending Bitcoin may not rise, thanks to the adoption of second-layer solutions similar the Lightning Network:

"In the long term, the fee for an on-chain transaction should rising, but that doesn't mean that fee for a Bitcoin payment has to rise. As Bitcoin grows, nosotros will run into more reliance on 2nd layer solutions such equally the Lightning Network. The fee for each payment on the 2nd layer can exist very cheap - but the on-chain transaction which opens a channel will exist more valuable, thus more expensive."

According to Rosenfeld, "at that place is a delicate residue with regards to the optimal fee level." He said that if fees are too low, miners become underfunded. If they are too loftier, the usefulness of Bitcoin decreases. He concluded:

"Fees are generally low at present then an increase can be a positive sign, but if they become too high, nosotros volition demand to seriously consider new scaling solutions."

Many traders have become increasingly bullish on Bitcoin equally the block advantage halving approaches. As Cointelegraph reported before today, Bitcoin hodlers are presently accumulating $530 1000000 of the coin each day.

Yesterday, a Bloomberg report stated that Bitcoin is preparing for a bull run reminiscent of the ane that the cryptocurrency saw in 2022.