(Photo: Shutterstock)

Bitcoin's average transaction rate has reached its highest level in 10 months. Bitinfocharts data shows that Bitcoin rates reached a high of $ 2.94 (R $ 16) on April 30 – a value that has not been seen since July 2019.

Twenty-four hours earlier, average rates were in the range of $ 1.28. A day earlier, the average fee was $ 0.66. But on Thursday night (30), rates increased 129%.

Average Bitcoin rates rose to $ 2.94 on April 30 - the highest level seen since July 2019
Image: Bitinfocharts

Despite the sudden increase in the past few days, average rates on the Bitcoin network were already increasing throughout April. From April 1 to April 30, average rates increased by 673%.

The Mempool data obtained from Blockchain.com shows a large amount of transactions awaiting confirmation. The mempool represents the amount of data (in the form of transactions) that has yet to be confirmed and processed by Bitcoin miners.

The mempool reached 80 MB on April 30, showing the increase in unconfirmed transactions on the network at that time (Image: Blockchain.com)

These accumulated mempool records invariably result in higher transaction fees, as users increase fees to have their own transactions included in the next block.

During Bitcoin's historic high in December 2017, transactions took days to confirm and average rates rose to over $ 55.

High rates, while not ideal in any situation, can be seen as an increase in demand for space on the Bitcoin network.

On the other hand, critics may point to the inefficiency of having a digital payment system, where payments take several hours to confirm. Such high fees make Bitcoin not so useful for micropayments, for example.

Transaction speeds in Bitcoin are partially limited by the 1 MB block size. The current 67 MB backlog displayed on Blockchain.com should be cleared one block at a time before rates return to normal levels. Based on the ten minutes of each Bitcoin block, this can take more than ten hours.

* Translated and republished with authorization from Decrypt.co

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