Bitcoin transaction fees is cheaper now, as three of the most popular cryptocurrency exchanges have slashed their withdrawal fees rates by up to half.
Binance, Bitfinex, and Kraken have enabled SegWit (Segregated Witness), a process to increase block size limit, and capacity to add more transactions. Transaction batching is another method being adopted to help them significantly reduce bitcoin transaction fees and relieve congestion on the bitcoin blockchain network.
Kraken reduced withdrawal fees on Bitcoin to 0.0005, and on Bitcoin Cash to 0.0001.
Binance also announced a 50 percent reduction in Bitcoin withdrawal fees, to 0.0005 BTC, or around $5.70 at current prices.
Bitfinex slashed a third off its fees, which now stands at 0.0004.
These exchanges reduced their fees amid reports that Bitcoin’s transaction volume hit a two year low of 180,000.
Exchanges have seen new lows in trade volume as the transaction fee went as high as $10 which was unacceptable among a large section of customers.
The average transaction fee for Bitcoin was around $4 in June, when the price of Bitcoin was as low as $2500. Today, Bitcoin is trading around $11000.
People were starting to switch to other cryptocurrencies like Litecoin and Ethereum since the Bitcoin transaction fee started soaring.
The top 10 cryptocurrency exchanges in the world are estimated to be generating as much as $3 million in fees a day.