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Crypto Exchanges Adjust BTC Withdrawal Fees as Memepool Fills

• Exchanges are adjusting Bitcoin withdrawal fees due to a spike in Bitcoin transaction costs.
• Kraken has increased their withdrawal fees to match the current on-chain fees, while OKX and KuCoin have used dynamic adjustments based on the amount of actual processing fees on the chain.
• Kraken suggests users use Lightning Network as an alternative to avoid high withdrawal fees.

Increasing Bitcoin Transaction Costs

Amid a spike in Bitcoin (BTC) transaction costs, cryptocurrency exchanges are taking measures to serve their clients properly.

Kraken Adjusts Withdrawal Fees

The United States-based exchange Kraken has increased Bitcoin withdrawal fees to match the current fees on-chain, the company’s customer support manager wrote on Reddit on May 10. According to the data, Kraken charges 0.00035 BTC, roughly $10, for a Bitcoin withdrawal, with a minimum amount of 0.0005 BTC, roughly $13. The minimum BTC withdrawal amount on the Lightning Network (LN) also differs from non-Lightning BTC starting from as low as 0.00001 BTC, less than $1.

Other Exchanges Adjusting Fees

Crypto exchange OKX charges between 0.00096 BTC ($26) and 0.00192 BTC ($53) for a BTC withdrawal, with a minimum of 0.001 BTC ($27). KuCoin uses dynamic adjustment for its fee and minimum withdrawals based on market conditions at any given time; currently ranging from 0.00002 – 0