Bitcoin Transaction Fees Surge as Chinese Exchange Classifies User Wallets

Bitcoin Transaction Fees Surge as Chinese Exchange Classifies User Wallets

Citing data from Blockchain explorer Mempool.space, the specialized cryptocurrency media outlet WooBlockchain analyzed that "transaction fees within the Bitcoin network spiked momentarily to a high of 520 sat/vb". This surge is believed to be influenced by Chinese cryptocurrency exchange OKX's ongoing user wallet classification efforts. WooBlockchain further reported that "the Bitcoin network currently has over 330,000 transactions awaiting confirmation, resulting in significant congestion with memory usage reaching approximately 1.35 GB". The increase in transaction fees is attributed to the influx of transactions caused by OKX's wallet classification process, which requires users to verify their identities and classify their wallets as either "personal" or "business." This has led to a temporary spike in transaction volume, resulting in higher fees for users seeking to process their transactions quickly. Experts anticipate that the surge in transaction fees will gradually subside as OKX completes its wallet classification process. However, this incident highlights the potential impact of large-scale user activity on the Bitcoin network and the importance of optimizing network efficiency to accommodate future growth.