In a surprising turn of events, Bitcoin transaction fees have experienced a noteworthy surge. This upswing in fees comes on the heels of a resurgence in Ordinals inscriptions, driving demand and activity on the Bitcoin network.
Data from Glassnode indicates a substantial increase in transactions awaiting confirmation in the Bitcoin network’s mempool, reaching a volume of 88,000 BTC. Notably, a closer look at the transactions reveals a concentration under the 50+ sat/vByte fee cohort, with high-priority transactions demanding up to 337 sat/vByte, equivalent to approximately $20.
Simultaneously, Bitcoin fees have skyrocketed to around $12.5 million, placing it in close competition with Ethereum, which currently leads with $15 million in fees. This complex interplay between transaction volumes, waiting times, and fee structures underscores the intricate dynamics shaping overall transaction costs in the Bitcoin network.
Last month, Bitcoin outpaced Ethereum in transaction fees, marking a deviation from the established pattern observed over several years. This shift was attributed to heightened network activity on Ethereum, primarily fueled by the concentration of decentralized applications on the blockchain.
The trend of Bitcoin outpacing Ethereum in transaction fees persisted for nearly two-thirds of the month, reaching its widest point in two years. A significant factor contributing to this anomaly was the increased demand for Bitcoin Ordinals, the well-known non-fungible token (NFT) of the market leader, which led to heightened network activity and mempool congestion earlier this year.
Recent data from CryptoSlam indicates that Ordinal transactions reached their peak in November, totaling approximately $367 million, surpassing Ethereum’s figures. This unexpected trend signifies a departure from the norm and emphasizes the impact of specific factors on transaction fee dynamics in the cryptocurrency landscape.
The resurgence of Ordinals, a protocol enabling the storage of NFTs on the Bitcoin blockchain, has not only influenced transaction fees but has also propelled Bitcoin to the top position in NFT sales volume. This development, as per CryptoSlam data, resulted in Bitcoin overtaking Ethereum in NFT sales volume, a significant shift in the crypto landscape.
On September 9, Bitcoin experienced its largest single-day creation of addresses in five years, with 717,331 new BTC addresses formed. This surpasses the noteworthy event on December 14, 2017, indicating potential signs of widespread adoption or speculative interest in the cryptocurrency.
