In June, Bitcoin transaction fees dropped to below 1% of the Block Reward, marking a new low since January 2022.

Gate News bot message, as of June, the transaction fees for Bitcoin have fallen to only 0.96% of the total Block Reward, which may set a new low since January 2022.

Despite Bitcoin (BTC) trading prices nearing historical highs, this decline highlights the sluggish on-chain activity. Luxor’s Hash Rate Index shows that transaction fees accounted for only 0.65% of the Block Reward in the past 24 hours. According to The Block’s data dashboard, the seven-day average number of Bitcoin transactions has dropped to its lowest point since October 2023.

In April 2024, due to the post-halving surge of Runes and meme coins causing a brief network congestion, transaction fee revenue skyrocketed, and then continued to decline. Subsequently, the demand for block space gradually faded, leading to a decrease in transaction fees.

In May, transaction fees accounted for only 1.3% of the Block Reward, reaching a historic low, but data from June indicates that this proportion will further decline. The current Block Reward is 3.125 BTC, and a fee rate of less than 1% means that miners earn an average of less than 0.03 BTC in transaction fees per Block. This stands in stark contrast to May 2024 (the first full month after the halving), when transaction fees still accounted for 6.7% of the Block Reward.

The decline in transaction fee revenue has intensified the pressure on Bitcoin miners. The hash price, a key metric for measuring miner profitability, remains weak at $53 per PH/s, about 50% lower than levels before the halving.

Source: The Miner Mag