Go take out your Bitcoins now, because Bitcoin’s withdrawal fees are reduced by 50% on some of the largest cryptocurrency exchanges in the global market including Binance and Kraken.
Last week, four of the most popular cryptocurrency exchanges i.e. Coinbase, Binance, Bitfinex, and Kraken have all reduced their withdrawal fees by up to half. The move comes due to the rising adoption of scaling solution and transaction malleability fix Segregated Witness (SegWit). Coinbase’s Vice President Dan Romero while talking about the significance of SegWit in a recent blog post, said that;
“New technologies which require SegWit, like the Lightning Network, have the potential to significantly increase the usefulness of Bitcoin as a payment network and benefit customers. We currently have a dedicated full-time software engineer working on open source contributions to the Lightning Network.”
This statement has resulted in an increased adoption rate of SegWit to 30% which was earlier only 13%. As we earlier reported that whenever the volume of the transaction on any crypto exchange increases the speed of transaction decreases. This caused Bitcoin transaction prices to rise to almost $30 per transaction earlier this year. With the help of SegWit’s solution which separates some signature data from a transaction, hence resulting in freeing up space on the Bitcoin blockchain for more transactions.
On Kraken and Binance, the withdrawal fees are 0.0005 BTC or around $5.70 at current prices. Whereas, Bitfinex, has slashed a third off its fees, which now stands at 0.0004 BTC. However, Coinbase’s transaction fees are still slightly higher.
To conclude, we can say that if more crypto exchanges continue to process billions of dollars worth of crypto-trading on daily bases by utilizing SegWit, Bitcoin’s transaction fee would further drop eventually.