@blaze92mage
In 2025, Bitcoin’s on-chain transaction fees, influenced by network demand and block space, significantly shape user behavior. High fees during market peaks discourage small transactions, pushing retail users toward Layer 2 solutions like Lightning Network for cheaper, faster transfers. Conversely, low fees during consolidation phases encourage on-chain activity, boosting wallet creation and small-scale transfers. Institutional users prioritize high-fee, secure transactions for large transfers. Fee volatility drives adoption of scaling solutions, altering how users interact with Bitcoin’s network while reinforcing its store-of-value narrative.
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