The post Bitcoin Transaction Fees Jumped from $0.26 to $132: The Reason Is Now Clear appeared on BitcoinEthereumNews.com.

Bitcoin transaction fees have soared to unprecedented levels following the launch of Babylon Labs’ new staking feature. Babylon introduced its native Bitcoin staking feature, which allows users to lock their BTC through a self-custody process, causing a stir that sent fees skyrocketing. The announcement was made at 14:38, marking the start of the first phase of Babylon’s staking mainnet. In just 90 minutes, the median cost of a Bitcoin transaction skyrocketed from $0.26 to $132, according to blockchain data from mempool.space. The increase began at block 857905 and peaked at block 857911. Babylon’s system allows users to stake Bitcoin directly on any proof-of-stake (PoS) network, offering the potential to earn yield while maintaining control of their assets. The process does not require third-party addresses, bridging, or oracles. However, the current staking phase is still in its early stages and no rewards have yet been distributed. The initial “lock-only phase” is designed to collect and secure Bitcoin deposits that will later be used to support a PoS chain. The appeal of being an early staker led to a rapid influx of deposits into the Babylon protocol. Within a few hours, the platform reached its maximum staking capacity of 1,000 BTC, worth $60.7 million. This was achieved through contributions from 12,710 stakers and 20,610 individual delegations. The rush to secure spots in the staking pool has triggered a fee bidding war as users want their transactions to be processed quickly by Bitcoin miners. Higher fees are paid to prioritize transactions, leading to a dramatic increase in costs. *This is not investment advice. Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data! Source: https://en.bitcoinsistemi.com/bitcoin-transaction-fees-jumped-from-0-26-to-132-the-reason-is-now-clear/

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Filed under: News - @ August 22, 2024 11:26 pm