Bitcoin Fees Surge Nearly 1000% Since August as Popularity Rebounds
Bitcoin Fees Reach Highest Level Since May Meme Coin Craze Amid Resurgence of Ordinals NFTs
With an average transaction fee of $6.84 on Wednesday, the fees for using the Bitcoin blockchain have surged by almost 970% from a low of $0.64 touched in August, according to data from BitInfoCharts.
This increase is attributed to the rise in demand for ordinal coins, as nearly 1.9 million NFTs have been minted on the blockchain over the past two weeks, as reported by 21Shares, a digital asset management company.
Ordinals, a protocol that allows users to store NFTs on Bitcoin, has witnessed a significant surge in demand this spring during the frenzy of unique tokens.
Earlier this week, Binance, the world’s largest cryptocurrency exchange, saw its price almost double before giving up some of its gains on Wednesday.
Analysts at 21Shares commented, “While the arrangements were limited to memecoin applications, they acted as a conduit for the increasing demand in the Bitcoin blockspace.”
The report also noted that the resurgence of Ordinals is benefiting Bitcoin miners, as blockchain transaction fees now account for approximately 8.5% of their revenues.
This is particularly important for miners ahead of the Bitcoin halving event, which occurs every four years and is expected in April 2024, leading to a halving of block rewards for the industry.
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