Bitcoin Transaction Fees Reach To 24-month High With Over $30
- The average Bitcoin transaction cost has risen to $30.91, an all-time high since April 2021.
- Demand for block space is being driven by the growing popularity of the Ordinals protocol.
- The BRC-20 token standard inspired a slew of digital artwork and memecoins to emerge on the network.
It’s been a long time since the cryptocurrency boom of 2021, Bitcoin has such high transaction fees, and now, the network’s transaction fees have reached a two-year high.
According to ycharts.com, the average Bitcoin transaction fee has risen to $30.91, a figure not seen since April 2021. The months leading up to April 2021 were occupied by a craze that saw BTC reach more than $64,000. While the price of BTC is now less than half what it was at the time, the BRC-20 token mania has driven fees to new highs.
The recent introduction of the BRC-20 standard is boosting activity on the Bitcoin network.
The tokens, known as inscriptions, work with the Ordinals Protocol. Ordinals enable users to embed data into the Bitcoin (BTC) blockchain by embedding references to digital art in modest BTC-based transactions.
The recent surge in Bitcoin fees as a result of the introduction of Ordinals and BRC-20 tokens and the role Taproot plays in their integration into the Bitcoin network. The influence on Bitcoin’s security architecture when block rewards decrease, is an intriguing element. Miners are getting paid more than the block reward for the first time since 2017.
The recent large increase in transaction processing income may therefore be a welcome development, particularly considering the extreme suffering that has plagued the mining business during this crypto winter.
An unidentified person known as “Domo” produced the BRC-20 standard in March. The BRC-20 token standard enables users to produce transferrable tokens directly over the network, spawning a slew of digital artwork and memecoins based on Bitcoin.
Although Bitcoin was a single-asset blockchain, the Ordinals protocol permitted fungible BRC-20 assets to run on the chain through the Taproot soft fork. Taproot will debut in November 2021 with the goal of making transactions more efficient and cost-effective while establishing the basis for smart contracts and dApps.
By February, Taproot’s capabilities were being utilized to directly store jpegs and movies on the blockchain, resulting in a non-fungible market on Bitcoin, much to the chagrin of purists.
BRC-20 tokens have a total market worth of $730.8 million, according to the brc-20.io website. Ordi, Nals, and Pepe are the top three tokens, with values of $452.2 million, $42.3 million, and $34.6 million, respectively.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu