It's less than a day left for bitcoin halving, and transaction fees are rising sharply. This shows that users are ready to pay more for their transactions to prioritize them and for more unconfirmed transactions.
Bitcoin fees over $3
Bitcoin transaction prices have increased over the last few days as we are getting closer and closer to bitcoin halving.
According to Bitinfocharts, on Friday 8 May, the average transaction fee was about $3.19, an increase of 350% compared to 4 May.
Last time the transaction fees were so high in July 2019.
Bitcoin's network usually records an increase in transaction costs at times of high price volatility. In December 2017, when the price reached its record high of about $20,000, the transaction fee was as high as $55
Why are transaction prices rising?
Higher transaction fees suggest that users are willing to pay more to prioritize their transactions and reduce the waiting time that may be associated with more people using the network.
The increased network load is due to upcoming halving. When halving occurs, the amount of bitcoins awarded to miners as a reward will fall by half.
As can be seen in the graph above, the total volume of transactions that have not yet been confirmed has increased significantly over the past week.