What it is
The fee rate, often expressed as sat/vB (satoshis per virtual byte), is the amount a sender offers to pay miners for including their transaction in a block. Transactions with higher fee rates are typically prioritized by miners, especially when the network mempool is congested, as miners aim to maximize their block reward. This rate is determined by market demand for block space, not a fixed protocol rule.
Fee rates fluctuate significantly based on network activity and demand for block space. During periods of high demand, like during speculative rallies or network congestion, fee rates can spike, making small transactions uneconomical. A reader following Bitcoin news needs to understand that high fee rates indicate network congestion, potentially slowing down transactions for those who pay less.
Why it matters
Fee rates directly impact how quickly and cheaply your Bitcoin transactions confirm. High rates can make small transfers expensive and slow.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice