What caused bitcoin fees to retrace?

[BlackHatCoiner]

Here's a plausible scenario: people got bored with Ordinals. The hype died. People realized it's pump n' dump, like the rest of the crypto-space, and they slowly tried to cash these out.

Now, it's just unconfirmed, low-fee Ordinals waiting to get a confirmation. Too bad it's late for them. 

So, is there a chance we get lower than 5-10 sat/vb? Yes.

[tread93]

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..

Flooding the network with apes dicks lmao. That is a good on m8. Its crazy to think how high the fees did get at one point, despite the down turn in price it is nice seeing the fees go down a bit. I no lie had some insane fees on a transaction where I just happened to send it when the fees were at an all time high. Don't ask. This did happen to be during a time when I didn't trust ledger and I moved all my shit off of there. Fuck ledger lol.

[FinneysTrueVision]

Runes still make up a majority of Bitcoin transactions. Like their predecessors Ordinals and BRC-20 tokens, or other similar fads like NFTs, I expect the hype to continue to diminish, which will cause fees to decrease further. If Bitcoin starts getting bullish again, the spam waves will probably last a bit longer, but I don’t see Runes, Inscriptions, etc. having much utility or demand in the long run.

[Betwrong]

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..

First off, I'm glad that the fees went down to as low as 9 sat/vB and that today we can pay less than $1 for a high priority transaction. I have to admit that couple of times in recent years when the transaction fee was above $40 I thought that it will never be fixed and that it's the end of Bitcoin.

But I have a small question, if it's possible for you to answer. Does transaction fee depend linearly on the current Volume or is it a little bit more complicated?

[CageMabok]

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?

Bitcoin transaction fees will always be adjusted to the price of Bitcoin itself because from the current price range it is of course very normal that the amount of fees for each transaction has decreased because the price of Bitcoin itself is not increasing at this time. However, there are also other influences such as the large number of transactions at one time causing excessive congestion, but for now this is normal for fees because it is quite in line with what is happening now in Bitcoin.

[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?

Bitcoin transaction fees will always be adjusted to the price of Bitcoin itself because from the current price range it is of course very normal that the amount of fees for each transaction has decreased because the price of Bitcoin itself is not increasing at this time. However, there are also other influences such as the large number of transactions at one time causing excessive congestion, but for now this is normal for fees because it is quite in line with what is happening now in Bitcoin.

I think it is worth noting that the price of bitcoin is going up, the volume is up and yet the fees are down.  In my opinion this is a clear indication of what caused the fees to go up and wasn't volume or price.  The fees went up because of Runes and Inscriptions.

If you believe in Bitcoin as a game changing currency that can free people from the centralized control of fiat currencies then we should insist that the developers increase bitcoins efficiencies and remove the wasted and counter productive ordinals from the protocol!!!!!

[dezoel]

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?

When transactions become too many, the network becomes congested, which means that miners benefit and those who pay higher fees, larger traders get their transactions done first, and those with smaller transaction amounts get processed less. For those who are doing transactions with low fees, their transactions are late, the sooner the transaction is done, the more fees they need to pay.

The price of Bitcoin has also come down, the market is slowly going down, so the fees, transaction fees, and trading fees are also decreasing. It doesn't seem like the transaction fees were too high when Bitcoin was high, but as Bitcoin is going down, the transaction fees are getting lower as well.

The increment in the amount of transactions is always a combined thing, runes, ordinals, and normal transactions from from exchanges, and other platforms.

[yhiaali3]

Runes still make up a majority of Bitcoin transactions. Like their predecessors Ordinals and BRC-20 tokens, or other similar fads like NFTs, I expect the hype to continue to diminish, which will cause fees to decrease further. If Bitcoin starts getting bullish again, the spam waves will probably last a bit longer, but I don’t see Runes, Inscriptions, etc. having much utility or demand in the long run.

This is true, unfortunately this problem has hardly ended before it reappears with the increase in transactions for NFTs such as Ordinals and BRC-20 tokens, Runes.

These NFTs do not have any real benefit, but in any case we cannot prevent creativity and they are useful for miners who want to obtain higher fees. They could have a benefit in the future as mining rewards decrease, as high fees can compensate for the decrease in mining rewards.