In 2024, Bitcoin transaction fees have stayed relatively low, particularly since the April Bitcoin halving, which reduced the BTC mining reward by half.

Bitcoin and Ethereum transaction fees have plummeted to their lowest levels in months amid a severe downturn in the crypto market. As of June 23, the average Bitcoin transaction fee fell to $1.93 per transaction, marking its lowest point since October 2023. This drop in fees indicates a decrease in network activity and competition for block space.

Historically, Bitcoin transaction fees surge during periods of high market volatility and rising prices, reflecting increased competition for block space. However, during the 2021 bull run, when Bitcoin's price reached $69,000, transaction fees remained relatively stable, breaking the usual pattern observed since 2012.

Similarly, Ethereum gas fees have also reached new lows. The gas price recently dipped to 1 gwei, the lowest in years, with the current average fee around 4.5 gwei. The reduction in Ethereum gas fees is attributed to the shift in activity from Ethereum’s base layer to its layer-2 network following the March Dencun upgrade. This upgrade has led to a 92% decrease in average gas prices on Ethereum. According to Layer2 Insider, layer-2 networks collected $950,000 in fees over the past week.

These declines in transaction fees coincide with a significant downturn in the crypto market. Bitcoin's price fell below the $63,000 support level, and many altcoins experienced substantial double-digit losses. Despite a general upward trend in the crypto market over the past six months, including new all-time highs for Bitcoin and some altcoins, the recent weeks have been dominated by bearish sentiment, leading to massive liquidations in the leveraged market and heavy losses for spot holders.

This trend of lower transaction fees reflects the broader market conditions, with reduced trading activity and less competition for network resources as prices and market sentiment decline.