Since the April Bitcoin halving, which cut the BTC mining incentive in half, transaction fees for Bitcoin have remained comparatively low in 2024.

Transaction costs for Bitcoin and Ether have dropped to their lowest points in several months during one of the worst weeks for the cryptocurrency industry in 2024.

The average Bitcoin transaction cost hit $1.93 on June 23, which is the lowest since October 2023. The Bitcoin network's low fees indicate a decline in competitiveness and network activity.

On the Bitcoin network, transaction costs frequently skyrocket during periods of extreme market volatility, particularly when values rise. The rivalry for block space is intensifying as a result of the heightened price speculation.

Because of this, since 2012, every significant bull market has seen a rise in fees; the only exception being the bull market of 2021, during which time the price of Bitcoin reached $69,000 but transaction fees stayed comparatively low.

The cost of Ethereum petrol is almost at a record low.

Conversely, ether petrol expenses have also fallen to a record low, with petrol costs as low as 1 gwei, the lowest in many years. On the Ethereum network, the gas fee is currently around 4.5 gwei.

On the Ethereum network, Gwei is a form of Ether that is used for buying and selling products and services. One billionth of an ETH is equal to one gwei.

Following the March Dencun upgrade, activity shifted from Ethereum's base layer to its layer-2 network, which is why the gas fee on the platform is so low.

On Ethereum, average petrol costs have dropped by over 92% since the Dencun update. A report from Layer2 Insider claims that during the past week, the layer-2 networks made $950,000.

Chaos in the cryptocurrency industry

The major two cryptocurrency networks are offering reduced transaction fees at a time when the market is experiencing one of its worst weeks in 2024. While numerous altcoins had double-digit price drops, the price of bitcoin fell below the $63,000 price support.

Over the past six months, there has been a notable surge in the cryptocurrency market, with some altcoins and popular cryptocurrencies like Bitcoin reaching all-time highs.

But the bears have taken control over the last few weeks, wiping out billions from the leveraged market while spot holders suffered significant losses as well.