BITCOIN

Bitcoin transaction fees surge nearly 1000% as NFT market on BTC surpasses Ethereum

share
Bitcoin transaction fees surge nearly 1000% as NFT market on BTC surpasses Ethereum

Table of Contents

Transaction Fees Surge Impacting Miner Revenue

According to CoinDesk's report, Bitcoin transaction fees have witnessed an astounding increase of nearly 1000% since August, primarily driven by the resurgence of non-fungible tokens (NFTs) on the Bitcoin blockchain, specifically Ordinals. As per the latest report by 21Shares, this trend not only reflects market activity but also has a positive impact on the struggling miner revenue in the industry.

Bitcoin NFT Revival Drives Fee Surge

Data shows that the average transaction fee on the Bitcoin blockchain has reached $6.84, marking the highest level since the meme coin frenzy in May.

Data from BitInfoCharts further reveals that this figure has surged by approximately 970% from a low of $0.64 in August. This upward trend is primarily driven by the increased minting of Ordinals, with nearly 1.9 million inscriptions uploaded to the Bitcoin blockchain in the past two weeks.

Surge in Bitcoin Transaction Fees

Bitcoin Overtakes Ethereum as NFT Sales Leader

According to data from CryptoSlam, in the past 24 hours, excluding wash trades, Bitcoin has surpassed Ethereum to become the blockchain with the highest NFT sales volume, showcasing Bitcoin's rise in the NFT market.

Bitcoin NFT Transaction Volume
Bitcoin NFT Sales Volume Tops

Recently, venture capitalist Jason Fang, founder of Sora Ventures, purchased OnChainMonkey Ordinals NFT for $100,000:

Sora Summit 2023 | Asia's Only "Bitcoin Ecosystem" Themed Summit

Ordinals Protocol Driving Fees and Miner Revenue

The Ordinals protocol allows users to store NFTs on the Bitcoin blockchain, witnessing a surge in demand during the spring meme token frenzy, driving fees to near two-year highs. Binance listed the BRC20 token ORDI as a tribute to Ordinals this week, with its price nearly doubling post-listing.

Binance updated ORDI token information, mistakenly treating ORDI as the native token of the Ordinals protocol.

Analysts at 21Shares point out that while Ordinals are currently used for meme coins, they indeed serve as a proxy for the increasing demand in the Bitcoin blockchain space, particularly crucial for miners. Currently, blockchain transaction fees account for about 8.5% of miner revenue, a ratio that becomes critical as Bitcoin's quadrennial halving event approaches. The halving event expected in April 2024 will significantly impact their total income.