Bitcoin’s network fees have plunged to historic lows, raising fresh debate about activity and adoption trends.
According to new data from Glassnode, the average daily transaction fees on the Bitcoin blockchain, measured by a 14-day simple moving average, recently dropped to just 3.5 BTC per day. This marks the lowest level of fee revenue since late 2011, a time when Bitcoin was still in its earliest adoption phase.
The decline is particularly striking given Bitcoin’s price strength. BTC has been consolidating above $110,000 in recent weeks, yet fee income for miners has not kept pace with market valuations. Historically, fee spikes have coincided with bull market frenzies, such as the 2017 and 2021 cycles, when congestion drove fees sharply higher.
The current trend may highlight a combination of factors:
- Efficient usage of block space through scaling improvements like SegWit and Lightning.
- Lower network demand relative to peak bull-cycle periods.
- Competition from alternative blockchains where NFT mints, DeFi activity, and token transfers have shifted significant transaction volume.
For miners, the drop in fee revenue underscores the increasing reliance on block subsidies, even as halvings continue to reduce rewards. For Bitcoin users, however, cheaper transaction costs may make the network more attractive for everyday transfers and settlement.
Whether this signals healthy efficiency or weakening activity remains a point of contention among analysts. But the data is clear: Bitcoin’s fee market is quieter than at any point in the last 14 years.
