- Bitcoin Inscription transaction fees fell.
- Mining revenues began to fall, while long-term holders continued to support BTC.
The introduction of ordinal numbers and inscriptions cost Bitcoin[BTC] industry by storm as new use cases for the network emerged. This also led to high activity on the Bitcoin network.
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Based on Glassnode’s data, the share of Bitcoin transaction fees attributed to Subscriptions remained relatively high at 26%. In addition, only 12 of them (10.8%) out of 111 trading days recorded a higher relative share of fees.
It was worth noting, however, that the current dominance of Inscription transaction fees fell from its peak when they accounted for an astonishing 62% of all transaction fees.
Source: glasnode
Currently, the cumulative fees generated from Inscription transactions amounted to 1413 BTC, which equates to approximately $38 million in revenue.
While the current fee dominance of Inscription transactions was below peak, it still accounts for a significant portion of transaction costs.
This implies that the specific activities or addresses associated with subscription transactions remain relevant and continue to generate revenue on the network.
Source: glasnode
The current state of miners
The falling fees generated by subscriptions could have an impact on Bitcoin miners. Since subscription transactions contribute a significant portion of transaction costs, a reduction in their share could potentially lead to a reduction in the overall fees miners receive.
Read the Bitcoin price forecast for 2023-2024
Miners rely on transaction fees as part of their income stream, in addition to block rewards, to boost their mining activity. If the fees generated by Inscription TXs decrease, miners may experience a decrease in their total fee income.
At the time of writing, daily miner revenue fell from $41.74 million to $23.375 million over the past few days.
Source: Blockchain
If this drop in revenue continues, the miners will be forced to sell their holdings in order to remain profitable. This would push the price of BTC down even further.
Despite these factors, long-term holders continued to show confidence in the king coin.
According to recent data, long-term addresses with Bitcoin were observed to reach an all-time high. These addresses are usually unlikely to sell and succumb to selling pressure during volatile periods.
Bitcoin held by long-term holders, new all-time high 🔥 pic.twitter.com/Ok3jqBDWCi
— Will Clemente (@WClementeIII) May 20, 2023
