Yeliz Akmaca 
Bitcoin transaction fees have reached a new high in 2025. As BTC price nears $106,000, blockchain demand surges. According to The Block’s data, the average transaction fee has risen by $1 since early May. It currently stands at $2.40, the highest level this year. The primary reason for this increase is the growing transaction demand on the network, driven by Bitcoin’s price approaching $106,000. During peak times, users tend to pay higher fees to have their transactions confirmed faster due to limited block capacity. This has led Bitcoin’s transaction fees to hit their highest levels in 2025.
Bitcoin Price and Transaction Fees Rise
Bitcoin’s price hit $105,600 on May 12 before reaching $106,000 on Sunday. However, it soon dropped to $104,500. Despite this, transaction fees continue to climb. The Block’s seven-day moving average data shows fees have reached $2.40. Additionally, Bitcoin’s market dominance has recovered after a decline two weeks ago, indicating a liquidity-driven fluctuation. Dominance peaked at 64.4% on May 8 but fell to 61% by May 19. This coincided with Ethereum (ETH) increasing its market dominance to 9.75% and altcoins rising to 22.35%. Stablecoins’ total market dominance dropped to 6.3%.
Transaction Count Drops While Supply Tightens
Despite rising fees, the daily transaction count is declining. The average transaction count, which was 507,000 in April, dropped 35% to 330,000. According to Glassnode data, Bitcoin’s illiquid supply—a measure of BTC held in wallets with minimal spending activity—is increasing. Exchange supply is decreasing, and this metric recently hit a new all-time high. This could create a supply shock if demand rises.
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