Bitcoin’s transaction fees are inching higher as its price increases, signaling an uptick in demand for the blockspace of the world’s largest cryptocurrency.
The price of bitcoin hit nearly $106,000 on Sunday, according to The Block’s Bitcoin Price page, slightly more than a recent high of around $105,600 reached on May 12. BTC dipped shortly after, and currently trades around $104,500.
Alongside the increase in price comes an increase in transaction fees on the blockchain. The seven-day moving average transaction fee on Bitcoin has increased by about $1 since the start of May, and its value of $2.40 is the highest recorded value in 2025 so far, according to The Block’s data.
Bitcoin’s dominance has also ticked up following a pullback two weeks ago, a possible sign that the dip in bitcoin’s value compared to the rest of the crypto market was driven by liquidity rather than a major paradigm shift towards an “altcoin season.”
Curiously, the increase in transaction fees seems to be offset by the decrease in the average number of daily transactions. That figure, which was as high as 507,000 on April 22, has fallen 35% to 330,000, according to The Block’s data.
Bitcoin’s illiquid supply, a measure of the BTC in wallets that show minimal spending activity, has recently hit a new all-time high, according to Glassnode data. The reduction in supply available on exchanges means a rise in demand can potentially trigger a supply shock, raising prices further.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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