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Bitcoin’s fee market has collapsed to alarming levels, with nearly 15% of blocks now processing transactions for almost free. This dramatic decline in transaction fees poses serious risks to miner profitability and network security post-halving. Galaxy Digital warns that Bitcoin risks becoming a ‘settlement layer without sufficient settlement activity’ as organic on-chain demand dwindles.
- 15% of Bitcoin blocks now process transactions for nearly free, with median fees dropping over 80% since April 2024
- Migration of NFT and meme coin activity to Solana and ETF locking of 1.3 million BTC have drastically reduced on-chain transaction demand
- Galaxy Digital warns Bitcoin risks becoming a 'settlement layer without settlement activity' as fee revenue collapse threatens network security post-halving
📎 Related coverage from: cryptopotato.com