Since last year, transaction fees have been lower than they were in the last bull run. Right now, they’re still cheap, while in the past they sometimes went over $100. What caused this change? Will low fees last, or will they rise again if Bitcoin’s price jumps?
Some main reasons
- Segwit adoption with more people use Segwit with wallets that support bc1q and bc1p addresses.
- Lightning Network adoption.
- Non custodial wallet adoption. More people see danger of custodial wallets and very expensive withdrawal fees from centralized exchanges, so they choose non custodial wallets and broadcast transactions with lower fee rates.
- Declines of Ordinals and Runes Protocol usages in the last one year.