Bitcoin Fees at Decade Low, Miners Face Security Risks

Bitcoin transaction fees have plunged to their lowest level since 2011, with a 14-day moving average of just 3.5 BTC per day. Despite Bitcoin trading above $110,000, average on-chain fees fell to around $0.67 per transaction on August 23, 2025—10% lower year-on-year. Analysts attribute the drop in Bitcoin transaction fees to weaker demand for blockspace as investors increasingly use Bitcoin as a store of value rather than for payments. Improvements such as SegWit and the Lightning Network have also eased network congestion and lowered costs. The decline follows a surge in NFT-related activity in 2023–2024 that once pushed transaction costs as high as $50. Now, roughly half of all blocks are under-filled, reducing fee revenue for miners. After the 2024 halving cut block rewards to 3.125 BTC, miners had expected transaction fees to offset the revenue shortfall. Instead, low fees mean they remain heavily dependent on block subsidies. Persistent low Bitcoin transaction fees raise concerns over network security and miner profitability ahead of future halvings. Smaller operators may struggle to cover costs, potentially leading to mining centralization and increased risk of 51% attacks. On the upside, cheaper fees could boost everyday use and payment adoption. The balance between block rewards and transaction fees will be critical for Bitcoin’s long-term viability.