Bitcoin Transaction Fees Reach 2011 Levels, Affecting Miners

Key Points:

Bitcoin BTC +0.82% transaction fees fall to lowest since 2011, affecting miners.
Miners face reduced revenue, relying on block subsidies.
Ethereum ETH +1.15% sees increased activity alongside Bitcoin fee reduction.

bitcoin-transaction-fees-at-lowest-since-2011-affect-miners — Bitcoin Transaction Fees at Lowest Since 2011 Affect Miners

The Bitcoin network’s daily transaction fee has plummeted to 3.5-4.09 BTC, reaching a low not seen since 2011, confirmed by on-chain analytics platforms and dashboards in August 2025.

This reduction in fees signifies a shift in miner economics and affects market activity, with potential implications for Ethereum’s market share as Bitcoin’s dominance declines.

The Bitcoin network’s daily transaction fee has declined to around 4.09 BTC, marking its lowest point since late 2011. This decline represents a pivotal shift in market dynamics and miner economics.

The reduction was confirmed via on-chain analytics from Glassnode and Alphractal. Stakeholders include Bitcoin core developers and mining pool operators significantly affected by these changes.

The drop in transaction fees impacts miner revenue, with daily revenue now below 4 BTC. Miners are increasingly reliant on block subsidies, especially following the most recent halving.

This fee drop has affected the Bitcoin market’s structure, reducing BTC’s dominance from 64.5% to 59.7% as Ethereum gains traction.

Without direct regulatory statements, institutional investors reflect changes in derivatives. Market actors prepare for continued volatility as transaction fees continue to fluctuate.

Historically, fee reductions followed peak congestion, similar to post-Ordinals mania in 2024. Low-fee blocks might lead to network incentives or policy shifts as miner economics adapt.

Matthew Sigel, Head of Digital Asset Research, VanEck, said, “Network transactions increased 26% MoM to 12.9M — the highest since November 2024 — while median fees fell 13% to 421 sats, the lowest since September 2024. This drop was partly due to a reduction in ordinal inscription activity, which hit its second-lowest level since August 2024.”