Bitcoin’s on-chain activity surges – but fees stay low

Last week saw an explosion in demand to make Bitcoin on-chain transactions, but we only saw a minuscule increase in the mean transaction fee. Why?
Source: CoinMetrics

During the past seven days, users have transferred a daily average of 830,000 BTC over the Bitcoin network – the highest since 2011.

The surging number of bitcoin transferred per day indicates a high demand for making on-chain transactions, which, all else equal, should lead to increased transaction fees. Still, the daily mean transaction fee has stayed remarkably low over the past seven days, only seeing a slight increase to just above $2.

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