Bitcoin's Transaction Fees Outpace Ethereum Amid Surge in Ordinals-Related Activity
Summary:
Surpassing Ethereum, Bitcoin's daily transaction fees have seen a surge due to increased activity involving the Ordinals Protocol on the Bitcoin network. The use of this protocol, which allows the creation of nonfungible token-like assets and BRC-20 tokens with Bitcoin, has fueled the uptick since late October. Additionally, the listing of ORDI, a significant BRC-20 token, on Binance, and a $7.5 million seed round launch by Ordinals-based project, Taproot Wizards, contributed to the surge.
Bitcoin's average daily transaction fees have recently surpassed that of Ethereum, triggered by a surge in Ordinals-related activity on the Bitcoin network. Data compiled by BitInfoChart on Nov. 20 showed that Bitcoin's daily transaction fee averaged at $10.34, while Ethereum settled at an average of $8.43. Notably, Bitcoin's daily transaction fee reached a six-month record high of $18.67 on Nov. 16, with Ethereum rates hitting $7.90. The sudden upsurge in Bitcoin's fees over the past five days is largely attributed to increased market interest in assets using the Ordinals Protocol. This protocol is utilized to create tokens similar to nonfungible tokens (NFTs) and BRC-20 tokens using Bitcoin. Following a noticeable decrease in activity from Sept. 25 until Oct. 23, an abrupt increase in Ordinals-associated assets began in late October, as per Dune Analytics data. It has been observed that more than 6 million Ordinal assets have been inscribed since late October. After Oct. 24, over 6 million Ordinals assets were established, amounting to more than 800 BTC in fees, equivalent to approximately $30 million, redistributed across the network. The surge in Ordinals activity intensified when ORDI, the second largest BRC-20 token on the market, was listed on Binance on Nov. 7. The listing sparked a surge in BRC-20 acquisitions, with the ORDI token's value increasing by over 50% on the day. Further, on Nov. 17, a project built on the Ordinals protocol, Taproot Wizards, announced a seed round of $7.5 million.
Published At
11/21/2023 2:51:56 AM
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