The use of Replace by fee in BTC transactions surged in 2021 and almost a third of the wallets use this solution every day so let’s read more in today’s BTC news.
The use of Replace by fee feature on the Bitcoin network which allows increasign the fee once the transaction is submitted, doubled in 2021 in what could be a sign that BTC adoption also led to an increase in competition among users to put their transactions ont the next blocks. According to the statistics compiled by Bitcoinops as the use of Replace by Fee transactions rose from 14% to 28% so far this year. The data shows that out of 144 BTC blocks, about a third of the transactions used the fee-boosting option that was implemented in 2016 when GreenAddress started supporting this idea.
The use of Replace by Fee didn’t have a very big impact during its first years of existence and in 2018, it managed to beat the goal of 5% transactions and will take another two years to reach the usability of 10% of the BTC transactions. As early as the third quarter of 2020, the story is changing. The user base increased and the crypto boom hit the institutional world and people even started sending BTC at a huge pace. The proportion of Replace by Fee transactions touched 15% in 2020 and 20% in April 2021 so they closed the year nearing 30% with a peak of 27.5%. as the entire BTC ecosystem grew, alternatives that wanted to improve the overall user experience became more popular. The trend is clear now and the number of RBF transactions is increasing but it doesn’t have a clear percentile ceiling in the short term.
On the other hand, in terms of daily transactions processed, the network fell well below the 450,000 reached in 2019. About 260,000 are processed every day and this already represents an increase in BTC activity of about 20% since June his year when the transactions fell to less than 200,000 per day as the price recessed. RBF usage is an essential statistic in terms of usability and shows a growing interest in fast transaction processing and more businesses started to deliver a BTC-friendly face with options like Replace by Fee or Child Pays for PArent helped create a much more flexible system for the users.
For example, the payment processor or exchanges can require up to 6 block confirmations to accept payment and the fee calculation is now something that most wallets offer automatically. In case of an error, the urgency on the part of the buyer and the use of Replace by Fee can save the users from long waiting times. And if paying more for faster transactions seems unreal, it would be a good idea to keep them away from the popular NFT projects and DEFI protocols.
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