Bitcoin transaction fee data from public blockchain explorers like Blockchain.com or CoinMarketCap

Bitcoin Fees Surge to $137 Amid Babylon Staking Launch, Over $1M in Fees Collected

Aug 22, 2024, 01:11 PM

Bitcoin transaction fees have surged dramatically, reaching as high as $137 per transaction, due to the launch of Babylon's Bitcoin Staking protocol. This new protocol allows Bitcoin holders to stake their coins in Proof of Stake (PoS) systems, locking their Bitcoin in a script to earn voting power and staking rewards. The rush to participate has led to over $1 million in fees being collected in a single Bitcoin block, totaling 18.676 BTC. The high demand for staking has also resulted in transaction fees increasing from previous levels of around $0.50, with some transactions costing approximately $100. Babylon's staking system has a cap of 1000 BTC, with transactions processed on a first-come-first-serve basis, each transaction using approximately 236 virtual bytes, which equates to using about five blocks of space. Fees have not been this high since the last Bitcoin halving.