Miner fees are the fees charged by miners to include a transaction in their block. The fee is rewarded to the miner who successfully hashes the block containing the transaction.
The current high miner fee situation on Coinbase Wallet is due to a combination of factors. First, the Bitcoin network has been experiencing high transaction volume due to increased popularity and usage.
This has resulted in blocks being full and miners having to choose which transactions to include in their blocks. To incentivize miners to include a particular transaction, users have been including higher fees.
Second, the price of Bitcoin has been rising rapidly over the past few months. This has led to an increase in demand for Bitcoin and, as a result, higher fees for miners.
Lastly, Coinbase Wallet uses a dynamic fee system that automatically adjusts fees based on network conditions. When demand for Bitcoin is high and blocks are full, Coinbase Wallet will automatically adjust fees upward to ensure transactions are included in blocks in a timely manner.
The current high miner fees on Coinbase Wallet are due to increased demand for Bitcoin combined with Coinbase Wallet’s dynamic fee system. Fees are likely to continue to be high as long as demand for Bitcoin remains high.