Bitcoin transaction fees fall to lowest level since 2017

Bitcoin transaction fees have dropped to their lowest level since 2017, on-chain analyst Darkfost said on X. The annual average fee is now under $0.40, a very low level compared to the past. However, transaction activity has not decreased significantly, with an annual average of 3,000 transactions occurring daily. "The decline in fees can be attributed to the introduction of Inscriptions, which utilize the Bitcoin network for storing images or files," Darkfost explained. "This feature adjusts the transaction capacity that can be included per block, marking a significant technological advancement for the Bitcoin network. Historical data shows a recurring pattern where fees peak during price highs and remain low in bear markets like the current one."