Demand for the Bitcoin network is beginning to take off, with the crypto’s ongoing price rise being the likely suspect behind this sudden uptick.
This has resulted in the cryptocurrency seeing a massive spike in its transaction fees, which have nearly reached the yearly highs that were set just after the mining rewards halving event took place in May.
Bitcoin’s hash rate has yet to decline and is still sitting right around its all-time highs. The high fees coupled with strong prices are making BTC mining increasingly lucrative, which could suggest that its hash rate is poised to see further growth in the near-term.
Bitcoin’s Network Health Surges as Hash Rate and Transaction Value Rise
Bitcoin’s prolonged consolidation phase within the lower-$9,000 region ultimately resulted in the benchmark digital asset incurring some strong momentum that led its price to highs of $11,400 that were set on Monday.
From this point on, BTC has been consolidating within the lower-$11,000 region.
This has caused the cryptocurrency to form an overtly bullish technical structure, with many analysts now calling for even further upside in the days and weeks ahead.
Bitcoin’s price isn’t the only thing that is looking strong, as its network is also seeing growing strength as well.
Currently, BTC’s hash rate is sitting just below its all-time highs of 126 million terahashes per second (TH/s) that were set just a couple of weeks ago.
It has stabilized around this number, and it will likely start climbing higher in the near-term due to the growing profitability of mining the crypto. This growth may be tempered, however, due to recent difficulty adjustments.
The value being broadcasted across the Bitcoin network is also growing, currently sitting at its highest level seen since late-April.
According to data from blockchain.com, nearly $3 billion worth of transactions ran through the BTC network on July 27th.
Image Courtesy of Blockchain.com.
BTC Transaction Fees Hit Yearly Highs
One result of the mounting demand for Bitcoin network space is rocketing fees.
Over the past few days, BTC fees have hit levels not seen in well over a year. In total, $2.06 million in tx fees were paid to miners on July 27th.
Image Courtesy of Blockchain.com.
The last time fees were anywhere near this high was just after Bitcoin’s mining rewards halving in late-May.
This growing network demand suggests that BTC’s ongoing price rise is being driven by underlying strength.
Featured image from Unsplash.