Bitcoin transaction fees have reached their highest level in almost six months as a new wave of inscriptions leads to increased competition for block space. Data from BitInfoCharts shows that the average BTC transaction fee is approaching $6 as of November 7th.
This surge in fees is due to the return of Bitcoin Ordinals, which are nonfungible tokens (NFTs) that store data directly on the blockchain. BRC-20 Ordinals have been adding significant transaction numbers for Bitcoin miners to process on-chain, resulting in a clogged mempool and increased competition for confirmations. As a result, higher fees are required, and transactions without them will confirm much more slowly than normal.
According to statistics from GeniiData, there have been almost 1 million ordinal “mints” in the past week. The most active projects during this time include BEES, gpts, and HALV.
Bitcoin’s mempool currently has a backlog of over 120,000 unconfirmed transactions, compared to fewer than 30,000 at the beginning of October. This backlog further contributes to the increase in transaction fees.
While the high fees may be a burden for users, Bitcoin miners are reaping the benefits. According to Glassnode, 8.5% of miners’ revenue on November 6th came from the increased fee rates, marking the highest daily proportion since early June.
Social media users have warned that as current minting projects complete, new ones will come to take their place. This suggests that the fee trend may continue for some time.
It is important to note that this article does not provide investment advice or recommendations. As with any investment or trading decision, there are risks involved, and readers should conduct their own research.
In conclusion, Bitcoin transaction fees are currently at their highest level in almost six months due to the influx of new inscriptions, particularly Bitcoin Ordinals. This has led to increased competition for block space, resulting in higher fees and slower confirmation times. While users may be burdened by these fees, Bitcoin miners are experiencing increased profits. As the trend continues, it is advisable for individuals to conduct their own research and exercise caution in their investment decisions.