This article is also available in:

Fees / Block Reward Transaction Fee

The amount of transaction fees.

Fees

INTERVALS 
Tier 1:  1M, 1W, 3D, 1D	
Tier 2:  1M, 1W, 3D, 1D, 12h, 4h, 2h, 1h, 15m, 10m, 5m, 1m	
Tier 3:  1M, 1W, 3D, 1D, 12h, 4h, 2h, 1h, 15m, 10m, 5m, 1m

Transaction Fee in Block Reward

What is it?

The transaction fee in the block reward is an indicator in blockchain networks, such as Bitcoin, showing what percentage of the mining reward is made up of transaction fees. This indicator ranges from 0 to 1, where 0 means there are no transaction fees in the reward, and 1 means that the entire reward consists solely of transaction fees.

How to Analyze it?

Transaction Fee as a Percentage of Block Reward Indicator: Shows the percentage of transaction fees in the total block mining reward, with a value range from 0 to 1. In on-chain data analysis for networks like Bitcoin, this indicator can provide valuable insights.

Advantages:

Analyzing this indicator can help identify local moments of euphoria in the market.

High values of this indicator often correlate with local price peaks, which can signal upcoming shifts in price trends.

Delays in on-chain data metrics in exceptional circumstances can reach up to 40 minutes. Due to the structure of the Bitcoin blockchain, delays in these metrics typically range around 20 minutes.

Risks / Disadvantages:

Basing decisions solely on this indicator can be risky, as it does not take into account other significant market factors.

This indicator can also be misleading during abrupt, atypical market changes when transaction fees significantly rise in a short time without a clear link to price trends.

This graph illustrates the fluctuation of transaction fees as a percentage of the block reward. By observing the patterns and peaks in this graph, analysts and traders can gain insights into market behaviors and potential trends. However, as mentioned, it's crucial to consider this metric as part of a broader analysis, incorporating other market indicators and news for a more comprehensive understanding.

Updated on: 07/03/2024

Was this article helpful?

Thank you!