User Pays $3.1 Million in Fees for a Single Transaction

• The unlucky Bitcoin investor was charged nearly 84 BTCs to send only 55 coins thus largely benefitting the miners who confirmed the transaction at block height 818087.
• The blunder has aroused the need for DeFi protocols to integrate with the lightning network that significantly reduces the transaction fees without compromising on security and scalability.

The rising adoption of web3 protocols and blockchain technology, fueled by institutional investors and the high global inflation, has put most users at associated risks including unpredictable hacks, rug pulls, and unknown errors. In the latest high-profile loss, a whale Bitcoin (BTC) investor who had 139.42 coins in a wallet was charged more than half of the balance to send the remaining coins to a different address.

According to on-chain data, the Bitcoin sender was charged 83.6549 coins worth approximately $3.17 million only to send about 55.7699 coins worth about $2.1 million, thus making it one of the most expensive on-chain transactions recorded in the past few years.

💸 💸 💸 💸 A fee of 83 #BTC (3,146,245 USD) has just been paid for a single transaction!https://t.co/Vfj94PT81h

— Whale Alert (@whale_alert) November 23, 2023

Mixed Reactions on the High Bitcoin Transaction Fees

The high transaction fee has sparked different reactions as some X users suggested it might be money laundering while others opined it could just be another costly mistake. Moreover, such high transaction fees are not common among veteran crypto investors, for there is an established means to navigate high network congestion on the Bitcoin network.

Notably, the lightning network is an independent layer-two scaling solution for the Bitcoin network similar to the dozens of Ether-based L2 projects. By incorporating smart contract scripting, the Bitcoin network can achieve high scalability without the owner compromising their funds at any point. Currently, most crypto exchanges and non-custodial wallets led by Binance have integrated with the lightning network to enable a seamless adoption of web3 by mainstream users.

Reportedly, the AntPool bitcoin miner is believed to have received the high block reward. The last time a high anomaly in Bitcoin transaction fees was recorded involved Paxos company which paid half a million US dollars just to send about 0.074 Bitcoins. As a result, it is likely for blockchain veterans to make costly mistakes that are irreversible on the Bitcoin network, which is highly decentralized.

Meanwhile, it remains unclear if the Bitcoin miner will initiate a negotiation with the affected user to ensure credibility, which is sine quibus non to the success of blockchain technology.

BTC Bulls Awakening

The rise of whale Bitcoin transactions in the recent past has triggered a bullish outlook that could send the flagship crypto asset beyond $40k before the end of the year.

Moreover, Bitcoin is used as a stabilizing factor in the entire crypto market, especially in providing ultimate liquidity. For the first time since the Terra Luna UST-induced crypto capitulation, Bitcoin price has risen beyond $38K with the bulls in control. Interestingly, the rise of Bitcoin bulls has coincided with Do Kwon’s indictment in the United States or South Korea, where he faces fraud among other charges.

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