What caused bitcoin fees to retrace?

[we-btc]

Now that Bitcoin fees have come back down, what was the cause of the increase?  Was it runes and ordinals?

Has the volume of these derivatives declined to the point that fees are now what they used to be?

[bitmover]

Now that Bitcoin fees have come back down, what was the cause of the increase?  Was it runes and ordinals?

Has the volume of these derivatives declined to the point that fees are now what they used to be?

The market slowed down. As the price is down, we see less speculative movements with ordinals  runes etc...

Also less people sending btc to exchanges.

Fees will probably get higher again when we get closer to ath.

Then people will start selling Jpegs for millions again, flooding the network with apes dicks etc..

[Hazink]

Now that Bitcoin fees have come back down, what was the cause of the increase?  Was it runes and ordinals?

Has the volume of these derivatives declined to the point that fees are now what they used to be?

Everything has a season; ordinal and rune madness have taken a break for the main time.

Maybe the people buying and holding those NFT have come to realise that it's of no good value, or probably they are tired of spamming the Bitcoin network, or they can't keep up with the high fee again.

[Stalker22]

The recent spike in Bitcoin transaction fees was definitely connected to all the hype around ordinals and Runes.  When everyone rushed to try these out all at once, it crammed up the network and made fees shoot upward.  But we should remember that Bitcoin fees bounce up and down anyway depending on how much the network is getting used.  Bitcoin's limited block space is the bigger reason fees keep see-sawing to extremes with every wave of hype.

[Oshosondy]

The mempool is now at 10 sat/vbyte for fast transactions. This is still high to 1 sat/vbyte. But we can still say that the mempool has fallen in congestion to how it was in the past. But it would be good to see 1 sat/vbyte again.

The recent spike in Bitcoin transaction fees was definitely connected to all the hype around ordinals and Runes.  When everyone rushed to try these out all at once, it crammed up the network and made fees shoot upward.  But we should remember that Bitcoin fees bounce up and down anyway depending on how much the network is getting used.  Bitcoin's limited block space is the bigger reason fees keep see-sawing to extremes with every wave of hype.

Not only Ordinals and Runes, some exchanges also spammed the mempool with consolidated transactions that was making the number of transactions to increase and mempool become congested.

[alani123]

It's simple, the market slowed down and the crazy speculative market of ordinals and rune shit coins died. This was the major factor of inflating sat/vbyte prices for a long time. Taproot and segwit offer a comparative advantage to those that are interested to fill the Blockchain with data if you count the fees they pay on a per byte basis.

So now that there's very little profit incentive in shit coins the fees also went down because due to the scarce space on blocks even with the comparative advantage these shit coins were super expensive to mint in terms of dollar value lost.

[hosseinimr93]

The mempool is now at 10 sat/vbyte for fast transactions. This is still high to 1 sat/vbyte. But we can still say that the mempool has fallen in congestion to how it was in the past. But it would be good to see 1 sat/vbyte again.

There is no need pay 10 sat/vbyte even if you want your transaction to be confirmed fast. In the past 24 hours, there were only 5 blocks with minimum fee rate of 10 sat/vbyte or more.
At the time I am writing this post, you can put your transaction at less than 0.5 vMB from the tip of mempools with paying 6 sat/vbyte as transaction fee.

[Zaguru12]

Now that Bitcoin fees have come back down, what was the cause of the increase?  Was it runes and ordinals?

Has the volume of these derivatives declined to the point that fees are now what they used to be?

It was actually both of the ordinals and runes, coupled with some factors like the consolidation by some exchanges, Although all this had happened separately and but they both had their impact on the transaction fee. Right now there is still a significant amount of this inscriptions still taking place but there volume as reduce drastically, look at the number of ordiscan explorer you you will see that the number of inscriptions in each block is not getting to a hundred again not like the past. It seems the people lured into this might have found the rock bottom, also the bearish period could be reason why this shit coin movement is not like before.

[we-btc]

It seems like Runes, which launched on the day of the halving, played a large part.

The increase in fees helped miners when the rewards were cut in half but now fees are back down, bitcoin's price has come down 25% and the rewards are cut in half.

What is this doing to the mining industry?  Are miners suffering?

[kryptqnick]

I don't know which specific thing it was thing time, but it's usually some sort of NFT or a similar product that's overhyped. Thankfully, the craze always ends, and it doesn't normally take a long time for it to end. Then we can enjoy wonderfully low fees, as we do right now. It's $0.5 for a high-priority transaction, which is acceptable even for fairly small transactions and very nice for large transactions. I am annoyed by things like Ordinals, but I'm also happy to see that there is no long-term trend of growing BTC transaction fees; it's always something temporary, and Bitcoin goes back to normal.

[Smack That Ace]

Now that Bitcoin fees have come back down, what was the cause of the increase?  Was it runes and ordinals?

Has the volume of these derivatives declined to the point that fees are now what they used to be?

Everything has a season; ordinal and rune madness have taken a break for the main time.

Maybe the people buying and holding those NFT have come to realise that it's of no good value, or probably they are tired of spamming the Bitcoin network, or they can't keep up with the high fee again.

The hype around BRC and RUNE has died down because they have made enough profit or as you said everything has a season, but I don't think they are tired of spamming the bitcoin network or just because they can't keep up with the fees high.
The market is going through gloomy days and the general situation of all altcoin investors is mostly heavy losses. So people are no longer excited but once the market recovers, I believe new games will continue to be created. More projects similar to BRC and RUNE will be created soon and high fees will return, I think as long as developers still don't have a solution it will be difficult for fees to return to normal.

[rodskee]

Now that Bitcoin fees have come back down, what was the cause of the increase?  Was it runes and ordinals?

ordinals is a protocol that allows for nfts to be inscripted into the blockchain this means you can attach arts and whatever media to a satoshi however this kind of protocol requires larger block which in turn drives up the transaction fees

despite this i don’t think this is the main reason why the transaction fees are so high yes they contribute to it but it’s not primarily why

Has the volume of these derivatives declined to the point that fees are now what they used to be?

the transaction fees lowered as the price did

[OcTradism]

Now that Bitcoin fees have come back down, what was the cause of the increase?  Was it runes and ordinals?

Has the volume of these derivatives declined to the point that fees are now what they used to be?

Ordinals and Runes appeared chronologically but their appearances would have not made big effects on Bitcoin mempools and transaction fees if there had been no Bitcoin bull market.

Developers of Ordinals and Runes projects knew well that a bull market will help them to more easily launch their projects successfully. It is more easily to convince people believe in Ordinals or Runes projects in bull market. It's more easily to steal money from investors and developers can use it to accumulate bitcoins for themselves.

Latest months with Bitcoin correction from above $70k to below $60k or nearly $50k, are not good for BRC20 tokens.

[pakhitheboss]

ordinals is a protocol that allows for nfts to be inscripted into the blockchain this means you can attach arts and whatever media to a satoshi however this kind of protocol requires larger block which in turn drives up the transaction fees

I doubt NFTs can be considered as an art as they are bunch JPG images. Art all together is different form and has a physical presence. That is my understanding but the way you have explained NFT is commendable.

Now that Bitcoin fees have come back down, what was the cause of the increase?  Was it runes and ordinals?

We are now in a bearish market which means that we would not see a lot of transaction happening. In such scenario the network congestion is very less, that is the reason why the transaction fee are so low.

[Dailyscript]

Halving is over and it was part of the cause of the high transaction fees.

Demand and supply, runes and ordinals.

Soon there will be congestion on the blockchain and fees will go high back because we are close to reaching a new all-time high. From now to December we are expecting.

[seoincorporation]

Now that Bitcoin fees have come back down, what was the cause of the increase?  Was it runes and ordinals?

Has the volume of these derivatives declined to the point that fees are now what they used to be?

The runes and ordinals were a fact for sure because those transactios used to pay huge fees, but another fact was the big amount of transactios. While more transactios we have on the mempool people pay more fees, and that way is the same uses that sends the fees price to the moon. Nos the demand is low, and fees are low too.

[coolcoinz]

Most people don't send bitcoin right now because low price means nobody is buying unnecessary stuff with their coins, people went into holding mode. I always do this when the spot price doesn't satisfy me.

The way I approach my investment is I accumulate most of the time and spend only when it's up by a lot. So, 80% of the time I'm in accumulation and hodl mode, while about 20% of the time I spend. I did some spending when we broke above 60k for the first time and then 70k, but below 60 I'm going to wait and see for the real bull market and that's coming, believe me.

Watch what the rich are doing. There's almost no outflows from Blackrock ETF. The rich are holding. The spot price means nothing right now, it's under fake pressure.

[aylabadia05]

Now that Bitcoin fees have come back down, what was the cause of the increase?  Was it runes and ordinals?

Has the volume of these derivatives declined to the point that fees are now what they used to be?

The dense Bitcoin transaction network has caused Bitcoin transaction fees to increase. A spike means the fees are high. If fees/transactions are as low as they are now, it can be concluded that network traffic is the opposite of dense and that is a normal condition on the Bitcoin network which makes using the Bitcoin network known to be great compared to using other networks.
In this case, what I have conveyed is a condition that I know about.

[serjent05]

We all know that the Bitcoin fee is related to the network transaction volume.  If the volume is too high that it congests the network, the Bitcoin transaction fee will increase.  This is so because of the competition to be confirmed first.  Since the Bitcoin miner prioritized the amount of fee paid and not the first come first serve basis, Bitcoin senders who wanted to get prioritized increase their transaction fee.  If the Bitcoin fees retrace, then this simply means that the volume of transaction isn't that huge to congest the network.

The increase of the transaction fee last time was because of the ordinals and runes so with the fee retracing means ordinals and runes network activity(minting nft) somehow trimmed down

[batang_bitcoin]

It seems like Runes, which launched on the day of the halving, played a large part.

The increase in fees helped miners when the rewards were cut in half but now fees are back down, bitcoin's price has come down 25% and the rewards are cut in half.

What is this doing to the mining industry?  Are miners suffering?

They probably are because of the cut of half in rewards. I am not a miner but I think that the most stable will remain. Despite the fees aren't that much, it only means that few are doing transactions nowadays. Are we going to be back when the fees are high? possible and it's only a matter of time. You'd see the network to be clogged again when more demand of runes and ordinals comes in, they were the reasons why we've got that much fees several months ago. And if it won't be about them when the next surge happens, then assume it that whenever bitcoin's price becomes higher, fees will be as well.