Bitcoin transaction fees have experienced an unprecedented rise, doubling in just one week as the market moves towards the coveted $70,000 mark. This increase cannot be attributed solely to the upward trajectory of Bitcoin’s price, but is significantly influenced by the sudden increase in the number of Ordinals transactions.
Ordinals: a driving force behind reimbursement escalation
Amid Bitcoin’s steep price rise, Ordinals Transactions have emerged as a driving force behind the increase in transaction costs. Our in-depth analysis shows that Ordinals, which started the week with around 48,000 daily inscriptions, witnessed an extraordinary increase, surpassing 93,000 on March 8.
This increase in daily registrations has not only contributed to a substantial increase in fees, with the daily average fee being around eight BTC, but has also added a staggering $3.8 million to the total network costs for the week.
Bitcoin market cap currently at $1.3 trillion. Chart: TradingView.com
Bitcoin fees are breaking records and reflecting market dynamics
Bitcoin’s cost trend for the week was nothing short of dynamic. While the initial daily fees were around 46 BTC, the momentum gained momentum around March 5, rising to an impressive 103 BTC. By the end of the week, the daily fee dropped slightly to around 40.7 BTC.
Despite the decline, the overall trend indicates a significant increase in daily fees compared to the previous week, demonstrating the dynamism and resilience of the Bitcoin market.
Bitcoin’s rise to $70,000 and its ripple effect
As Bitcoin teeters on the edge of the $70,000 price range, the cryptocurrency market is on the verge of a potential breakthrough. At the time of reporting, Bitcoin was trading at around $68,950, marking a value of 1.5 million euros An increase of 10% in the last seven days.
Bitcoin price action in the weekly chart. Source: Coingecko
A closer look at Bitcoin’s price rise
Examining IntoTheBlock’s data, it becomes clear that Bitcoin’s recent price increase is not just a result of the price increase. The notable increase in transaction fees, doubling from the previous week, is closely linked to the upward movement in the price of BTC.
Bitcoin fees more than doubled this week, with Ordinals-related transactions hitting a monthly high. pic.twitter.com/YXh9oMMYSK
— IntoTheBlock (@intotheblock) March 9, 2024
This move has pushed transaction volumes to their highest levels in months, with NewsBTC’s analysis revealing a staggering volume of over $100 billion on March 5 and 6, a level not seen since November 2022.
Ordinals’ Notable Contribution to Bitcoin Costs
NewsBTC’s detailed review of Ordinals transactions over the past week sheds light on this sector’s notable contribution to Bitcoin’s escalating fees. With daily entries skyrocketing and daily fees averaging around eight BTC, Ordinals has had a significant impact on the cryptocurrency landscape, contributing over $430 million in fees to date.
Featured image by Karolina Grabowska/Pexels, chart from TradingView
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