Bitcoin faces a fee crisis that threatens network security: Can BTCfi help?

Bitcoin’s daily transaction fees have dropped over 80% since April 2024, raising concerns about long-term network security. BTCfi could offer a way out.

Daily transaction fees on the Bitcoin network have collapsed by more than 80% since April, according to a report from Galaxy Digital. As of August 2025, nearly 15% of blocks are “free,” meaning they’re being mined with minimal or no transaction fees, just one satoshi per virtual byte or less.

That’s great for users, as they can enjoy cheap Bitcoin (BTC) transactions. However, it’s becoming a serious problem for miners and, by extension, for the network’s long-term security model.

Bitcoin’s incentive structure relies on miners being compensated for their work through block rewards and transaction fees. But with the April 2024 halving cutting rewards to 3.125 BTC per block, miners are leaning heavily on the fee market, and it’s drying up.

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