The Bitcoin network is currently facing a surge in network fees due to 332,000 unconfirmed transactions as of 12:05 pm Eastern Time on June 7.
During this time, network fees reached 514 sats for high-priority transactions and 513 sats for low-priority transactions, peaking at around 520 sats per transaction earlier in the day. In terms of United States dollars, this equates to $50–$52 in fees per transaction. However, priority fees have now decreased to approximately $46 per transaction.
Blockchain reporter Colin Wu suggests that the large number of unconfirmed transactions may be linked to the centralized exchange OKX collecting and organizing wallets, although this has not been confirmed at the time of writing.
Post-halving economics and the challenges faced by Bitcoin miners have become more prominent in recent times. The reduction of the block reward from 6.25 Bitcoin (BTC) to 3.125 BTC at the end of April has had a significant impact on miner profits.
Bitfarms reported a 42% decrease in mining revenue for the month of May, which was the first full month following the latest halving event. The company disclosed in its end-of-month report that it earned 156 BTC in May compared to 269 BTC in April. Additionally, the company’s Rio Cuarto facility had to shut down for eight days due to unusually low temperatures in Argentina, leading to a decrease in the total number of Bitcoins mined.
Bitcoin miners in the U.S. have spent a total of $2.7 billion on electricity since the beginning of 2024, despite facing increasing computing difficulty and reduced rewards. Analyst Paul Hoffman noted that Bitcoin mining in the U.S. has consumed a massive 20,822.62 GWh of electric power since the start of 2024, which could power 1.5% of U.S. households for a year.
In April, it cost an average of $52,000 to mine a single Bitcoin. Following the halving event, the cost has more than doubled to an average of $110,000 per Bitcoin.
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