Understanding Feerate

Transaction feerate is the “pulse” of the Bitcoin blockchain. It meters the resource usage of all on-chain actions.

When the network is congested with high priority transactions, feerate spikes. When the network activities dwindle, feerate gradually decays.

The change of the weight distribution of transactions on mempool causes feerate to move. In other words, feerate tends to be most affected by large on-chain events.

How weight distribution of transactions affects the BTC feerate:

Source: Alkimiya BTC Transaction Fee Market ⏳