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Explanation of Bitcoin fees dropping to a 3-month low with a $12 million decrease

  • Exciting news! Bitcoin’s total fees have reached a three-month low.
  • As a result, miners’ revenue from fees has also decreased.

The latest buzz is that Bitcoin [BTC] network fees are now at an all-time low, with the Layer 1 (L1) transaction volume showing a downward trend.

An interesting post on X (previously known as Twitter) revealed that Bitcoin network transaction fees plummeted to their lowest level in three months this week.

The total transaction fees for the week amounted to $12 million, marking a significant 45% drop from the previous week.

Current network status

This week’s decline in Bitcoin network fees is directly linked to a decrease in transaction volume.

Data from Santiment shows that the total BTC transacted on the network experienced a steady decline throughout the week.

Between May 11th and May 17th, Bitcoin’s transaction volume dropped by 5%.

Bitcoin Transaction Volume

Source: Santiment

With a decrease in demand, the average fee per transaction on the Bitcoin network has also dropped. According to Messari, this decline amounted to 17% during the period analyzed.

Currently, the average fee for a transaction on the Bitcoin network stands at $2.56.

The miners on the Bitcoin network are experiencing a significant impact from the low network fees.

After peaking at 75% in miner revenue from transaction fees post-halving on April 20, this percentage has seen a substantial decline.

Bitcoin Miner Revenue from Fees (%)Bitcoin Miner Revenue from Fees (%)

Source: Messari

Currently, only 4% of miner revenue is coming from user fees on the Bitcoin network, showing a drastic 95% drop from the year-to-date peak, as per Messari’s findings. 

Miners making strategic moves

Given the low revenue and recent price challenges, some miners are opting to sell their holdings.

AMBCrypto’s analysis of Bitcoin’s Miner Supply Ratio revealed a 0.21% decrease since the halving event.

This ratio indicates miners’ BTC holdings relative to the total supply of the coin, with a decline suggesting more coins being sold by miners.

This selling behavior is often influenced by high operational costs, profit-taking motives, or doubts about the coin’s price movements.


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Miner sell-offs are depleting Bitcoin’s Miner Reserve on the network, which tracks the coins held in miners’ wallets over a specific period.

Bitcoin Miner Reserve - All MinersBitcoin Miner Reserve - All Miners

Source: CryptoQuant

Based on CryptoQuant’s data, the current BTC Miner Reserve stands at 1.81 million, marking a 1% decline since April 25th. 

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