Miners process transactions and receive fees from users (supply-side fees).

Bitcoin is a distributed ledger for transfer and store of value (a blockchain). Bitcoin was founded by a pseudonym Satoshi Nakamoto and launched in 2009.

BTC holders own and govern the protocol. They currently do not take a cut of the total transaction fees paid by users (revenue).

github

block explorer

Blockchains (L1)

Bitcoin

# Bitcoin Fees Methodology

## 1. Overview

Bitcoin network fees represent the total amount paid in transaction fees across all Bitcoin blocks within a daily period, measured in USD. This metric captures the economic cost users pay to miners for processing their transactions on the Bitcoin network. The calculation aggregates fee amounts from individual blocks, converts them from satoshis to USD using daily price feeds, and sums them across daily boundaries.

## 2. Data sources

- **Bitcoin blockchain blocks data**: Raw Bitcoin block information including timestamps, block heights, block subsidies, and total fee amounts per block
- **Chainlink oracle price feeds**: Real-time BTC/USD price data from Chainlink oracle feed `0xf4030086522a5beea4988f8ca5b36dbc97bee88c` for dates after December 10, 2019
- **CoinGecko historical price data**: Historical daily Bitcoin price data for dates on or before December 10, 2019, using the `bitcoin` identifier

## 3. Step-by-step calculation

### Component A: Bitcoin block fee extraction
- **Purpose**: Extract and normalize fee data from Bitcoin blocks
- **Logic**: Bitcoin block data is processed to extract key fields including block timestamps, heights, block subsidies, and total fee amounts. The `total_fee` field represents the sum of all transaction fees paid within each block, initially denominated in satoshis. Fee amounts are converted from satoshis to Bitcoin by dividing by 10^8 (Bitcoin's standard decimal precision). Duplicate records are removed using distinct selection to ensure clean block-level data.
- **Key fields**: `block_timestamp` for timing, `block_number` for identification, `block_subsidy_amount` for mining rewards, and `total_fee_amount` for fee calculation

### Component B: Bitcoin price data assembly
- **Purpose**: Provide continuous daily Bitcoin price coverage from historical launch to present
- **Logic**: Bitcoin price data combines two sources to ensure complete historical coverage. For dates after December 10, 2019, Chainlink oracle prices are used from the BTC/USD feed, with prices averaged to daily level and truncated to day boundaries. For historical dates on or before December 10, 2019, CoinGecko daily market data provides the price feed. Both sources provide prices in USD, with the transition date ensuring seamless coverage without gaps or overlaps.
- **Key fields**: `timestamp` truncated to daily boundaries, `timestamp_grain` set to 'day', and `price` in USD

### Final aggregation
- **Combining components**: Daily block data is joined with daily price data on matching truncated timestamps, ensuring each block's fees are converted using the appropriate day's price
- **Currency conversion**: Fee amounts in Bitcoin are multiplied by the corresponding daily USD price to convert from BTC to USD values
- **Time aggregation**: Block-level fees are summed within each daily boundary using timestamp truncation, aggregating all blocks that occurred within the same calendar day
- **Final calculation**: The total daily fees represent the sum of all individual block fees (in USD) within each day, providing the total economic value paid to miners for transaction processing across the entire Bitcoin network for that day

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value users pay to use a protocol (gross fees, user-paid fees).

BitcoinBTC

Fees

Fees

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