- Bitcoin transaction fees skyrocketed due to the increased activity of Ordinals and BRC-20 transactions.
- BTC was trading at around $29,100, up nearly 1% with a strong support level at $27,000.
Bitcoin recently hit a major transaction fee milestone, thanks in large part to contributions from Ordinals inscriptions and BRC-20 related transactions.
The recent surge in fees on the network has raised questions about the role of these two growing Bitcoin features in fueling this trend. How exactly did these features contribute to the increase in fees?
– Read Bitcoins [BTC] Price Forecast 2023-24
Bitcoin fees are rising
Bitcoin transaction fees have increased in recent weeks, according to data from Cryptocosts. The upward trend started around April 23, and at the time of writing, transaction fees exceeded $3.3 million, peaking at over $3.5 million on May 3.
This increase in fees can be considered remarkable as it was the highest transaction level since May 2021. The driving forces behind this recent development are the Ordinals inscriptions and BRC-20 transaction fees, which have been the catalysts for the current increase in fees the fees.
The ordinal numbers and the BRC-20 effect
According to Dune Analytics, there has been a recent increase in activity for both Ordinals and BRC-20 transactions. On May 4, there were more than 188,000 BRC-20 transactionswhich attracted over 13 BTC worth over $396,000 at the time of valuation.
In addition, on May 4, the entry fee exceeded 14.9 BTC, which equates to more than $431,000. These two transaction fees together contributed more than $800,000 to total Bitcoin transaction fees on May 4. At the time of writing, the BRC-20 fees are more than three BTCs, while the regular fees are more than 5 BTCs.
At the time of writing, the total number is Ordinal numbers inscriptions was over 3.7 million, with a new daily transaction record of over 372,000 on May 1. The total fees associated with these transactions currently exceed $9.1 million, with a new daily transaction fee of over 28 BTCs recorded on May 1. As for BRC-20 transactions, the total number was over 2.7 million, with total fees of over 135 BTC or nearly $4 million.
– How much are 1,10,100 BTC worth today
The current price development of Bitcoin
At the time of writing, BTC was trading at around $29,100 on a daily timeframe chart, showing a gain of almost 1%. The resistance level was still strong in the $30,000 price zone, while support was also firm around the $27,000 price zone. The Relative Strength Index (RSI) confirmed the bullish trend for BTC.
Source: TradingView
