The Bitcoin network has witnessed a dramatic surge in transaction fees, hitting nearly $52 per transaction. This spike is attributed to 332,000 unconfirmed transactions as of June 7, 12:05 pm Eastern Time.

At the peak, high-priority transactions required 514 satoshis (sats) and low-priority ones 513 sats, equating to around $50-$52 in USD. These fees have since moderated to approximately $46 per transaction. Blockchain reporter Colin Wu suggested that centralized exchange OKX might be behind the unconfirmed transactions due to wallet reorganizations, though this was not confirmed at publication.

Post-Halving Economics and Miner Struggles

The recent Bitcoin halving, which reduced block rewards from 6.25 BTC to 3.125 BTC in late April, has significantly impacted miner revenues. This has been exacerbated by soaring network fees and increased mining difficulty.

Bitfarms, a notable Bitcoin mining company, reported a 42% decline in revenue for May, the first full month post-halving. The company earned 156 BTC in May compared to 269 BTC in April. Additionally, Bitfarms faced operational challenges due to extreme weather in Argentina, causing an eight-day shutdown of its Rio Cuarto facility.

In the U.S., Bitcoin miners have collectively spent $2.7 billion on electricity since the start of 2024, despite facing higher computing difficulty and reduced rewards. Analyst Paul Hoffman noted that Bitcoin mining consumed 20,822.62 GWh of electricity this year, enough to power 1.5% of U.S. households for a year.

The cost to mine a single Bitcoin has skyrocketed post-halving, from $52,000 in April to over $110,000 now, posing significant challenges to miner profitability and sustainability.

This recent turmoil in the Bitcoin network highlights the ongoing difficulties faced by miners and users alike, raising questions about the future of transaction fees and network efficiency.