Half a million dollars worth of Bitcoin cost the sender only $0.82 in transaction fees.
In an Oct. 27 transaction, a Bitcoin wallet transferred 24,530 BTC worth around $500 million on the network for a processing fee of 4,038 sats worth $0.82.
Satoshis or “sats” represent the smallest unit of measurement for BTC, with 100 million sats being the equivalent of a single Bitcoin.
For context, a similar transaction executed on centralized avenues or payment networks would have cost anywhere between $2 million to $15 million.
Data also shows that despite paying under a dollar in fees, the sender could have saved an additional 20% if they utilized the Taproot upgrade. Taproot batches multiple signatures and transactions together, lowering the cost of transactions and making it faster to process them.
However, the sender’s wallet address supports SegWit transactions – something that contributed to a 26% saving on transaction fees. SegWit is a Bitcoin protocol upgrade that addresses a block size limitation issue that lowered the network’s transaction speed.
At the time of writing, Bitcoin was trading at $20,252, rising 6% in the last seven days. It remains the largest cryptocurrency by market cap and accounts for more than 50% of trading volume, compared to all other altcoins in the market.