Bitcoin (BTC) network fees are seeing a massive surge in November as demand for ordinals floods the leading blockchain. Data from CryptoFees.info finds that BTC’s transaction fees skyrocketed from $779,549 at the start of the month to a peak of $11.63 million on November 17th, an increase of 1,391%. The number has slightly retraced and […]
The post Bitcoin Network Fees Skyrocket Nearly 1,400% in November As Ordinals Inscriptions Dominate Top Blockchain appeared first on The Daily Hodl.
Bitcoin users attempting to send on-chain BTC transactions are footing the bill for a fresh surge in Ordinals.
Bitcoin (BTC) transaction fees are at their highest in nearly six months as a new wave of inscriptions boosts competition for block space.
Data from statistics resource BitInfoCharts shows the average BTC transaction fee approaching $6 as of Nov. 7.
The return of Bitcoin Ordinals is making its presence felt this week as on-chain transactions attract highly elevated fees.
In an environment reminiscent of Q2 this year, blockspace is being taken up by ordinal inscriptions.
Ordinals are nonfungible tokens (NFTs) that store data directly on the blockchain. BRC-20 Ordinals can add significant transaction numbers for Bitcoin miners to process on-chain, clogging up the mempool and resulting in more competition for confirmations.
The result is that higher fees are required, and transactions without them will confirm much more slowly than normal.
Per statistics from GeniiData, almost 1 million ordinal “mints” have occurred in the past seven days.
The most active projects have changed in that time, with the most active minters coming from BEES, gpts and HALV at the time of writing.
BRC-20 coin $RATS is clogging up the mempool, causing a significant rise in Bitcoin transaction fees.
— Ordinals Wallet (@ordinalswallet) November 4, 2023
Can anyone give us more information about this token? pic.twitter.com/O7EAPHy83F
Bitcoin’s mempool currently has a backlog of over 120,000 unconfirmed transactions, according to live data from Mempool.space.
By contrast, at the beginning of October, the queue contained fewer than 30,000.
Discussing what might happen to the fee trend next, social media users warned that new minting projects would come to take over once others had completed.
Related: Elon Musk slams NFTs but ends up arguing the case for Bitcoin Ordinals
$BEES have turned mempool into ordhive
— pawellwitt.xbt (@pawellwitt) November 6, 2023
Fees are now around 70 sats!!
We already had $RATS $FOXS $OWLS $BNBS what’s next?!
Also, which Bee Collection will take off now that the token is minted out?! pic.twitter.com/PjMJdzRkyA
foxs was yesterday, now is the end of bees and next thing coming straight after
— Machine 384 (@sascha_bay) November 6, 2023
Reaping the benefits, meanwhile, are Bitcoin miners, whose income from fees is rapidly rising.
According to on-chain analytics firm Glassnode, for Nov. 6, 8.5% of miners’ revenue came from the increased fee rates — the biggest daily proportion since early June.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Payments giant Visa is exploring the possibility of allowing users to pay transaction fees on the leading smart contract platform Ethereum (ETH) using a card. In a new company blog post, the credit card titan says that paying gas fees using a card may simplify the process of transacting over Ethereum. According to Visa, users […]
The post Visa Exploring Ways of Paying Transaction Fees on the Ethereum Blockchain With Just a Card appeared first on The Daily Hodl.
It's been one of the most lucrative quarters for those that profit from Bitcoin transaction fees in nearly two years.
Bitcoin (BTC) miners made a lofty $184 million from transaction fees in the second quarter, far more than what they pocketed over the entire 2022 — as Bitcoin’s price surged and BRC-20 tokens flourished.
The $184 million payout is more than a 270% increase from the first quarter of 2023 and it is the first quarter to have surpassed the $100 million mark since Q2 2021, according to a July 5 report from cryptocurrency analytics platform Coin Metrics.
Bitcoin miners receive transaction fees whenevea new block has been validated, the amount of which is determined by the data volume and the user demand for block space.
Coin Metrics said the jump in fees was due to Bitcoin’s recent price surge bolstered ‘top-line revenues” and the advent of BRC-20, a new token standard on Bitcoin introduced in March which uses Ordinals inscriptions to mint and transfer fungible tokens on the network, adding:
“The token standard does unlock experimental new use cases for Bitcoin’s core transaction types, and accelerates the push to scale Bitcoin with the Lightning Network.
However, it is worth noting that transaction fees represented only 7.7% of the total $2.4 billion made by miners over the quarter.
The remainder came in the form of Bitcoin block rewards, with miners currently being rewarded 6.25 BTC for solving each block. This is set to fall to 3.125 BTC after the network’s next halving cycle, expected to take place in May.
Related: Bitcoin miners send record $128M in revenue to exchanges
Bitcoin miners also had other reasons to celebrate in the second quarter, according to the firm.
In May, the Bitcoin mining industry “notched a win” with the Biden Administration’s proposed Digital Asset Mining Energy (DAME) tax being blocked.
In this special edition of State of the Network, we take a data-driven look at the most important events that impacted the digital assets industry from Q2 2023.
— CoinMetrics.io (@coinmetrics) July 5, 2023
Get the insights here: https://t.co/xpcE27j1Fz#FutureofFinance #PutTruthtoWork pic.twitter.com/67RDHKA2bT
Bitcoin miners also enjoyed easier macroeconomics conditions in the quarter too, with “receding inflation pressures” translating to lower electricity prices for United States-based miners, Coin Metrics noted.
However, with Bitcoin’s hashrate continuing to reach new all-time highs over the last 12 months, competition in the mining fee market is also tightening, Coin Metrics explained:
“Competition remains as fierce as ever, with Bitcoin’s hashrate breaking new highs during the quarter at 375 EH/s [...] We see that the overall network’s efficiency continues to increase with the adoption of modern ASICs such as the S19 XP.”
Magazine: Bitcoin 2023 in Miami comes to grips with ‘shitcoins on Bitcoin’
On May 7, 2023, the Bitcoin network was plagued with an overwhelming 500,000 unconfirmed transactions, causing a major bottleneck in the system. However, the good news is that the congestion has been clearing, resulting in a significant reduction in onchain fees, which have now dropped below $5. As of now, there are only slightly over […]
Bitcoin was not subject to U.S. government selling this week, analysis shows, but BTC price action remains pressured.
Bitcoin (BTC) struggled to recover from fresh losses on May 11 as a false alarm over United States government sales spooked markets.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $27,400 at the time of writing.
The pair had seen a flash sell-off the day prior, briefly taking it to $26,850 after claims that confiscated BTC held by the U.S. government was being sold off.
This was subsequently disproved, but for already sensitive crypto markets, the damage was done.
Glassnode not showing any decline in the US Government's Bitcoin balance
— Will Clemente (@WClementeIII) May 10, 2023
4 pic.twitter.com/rJHcQ2B8Kc
Among traders, Jackis described the local lows as a “scam” move, while forecasting lower levels to come.
“When the move feels like a scam and trades likes a scam then treat it like it,” he tweeted.
“I do expect a breakdown lower sooner or later. I'm not yet sure how deep but prepared to act quickly if neccessary.”
Fellow trader Anbessa also confirmed that he was looking for further downside, like various others focusing on a target zone around the $25,000 mark.
#Bitcoin Roof Pattern
— AN₿ESSA (@Anbessa100) May 11, 2023
Consolidation at neckline $27369
after nailing all shorts starting from $30,4k
1.LONG breakout $27666 if you're tethered or
2.LONG here with a Stop Loss sub $27269
HTF pattern breakout above $28882
while I'm still looking for a throwback to $25,2k… pic.twitter.com/TYZXGyxNFz
Financial commentator Tedtalksmacro meanwhile called May 10 “just another day in crypto.”
In a Twitter summary of the day’s events, he added that U.S. inflation data had delivered for risk asset bulls, implying ongoing declines to come in the next few months.
In a silver lining for Bitcoiners, the past 24 hours saw a major shift in on-chain transaction fees, these deflating considerably after reaching levels which had caused widespread uproar.
Related: Binance ‘FUD’ meets CPI — 5 things to know in Bitcoin this week
Live numbers from Mempool.space had next-block fee rates at 47 satoshis per byte at the time of writing, or just $1.80.
According to data from monitoring resource BitInfoCharts, even on May 10, the average fee had fallen below $15 — a drop of over 50% versus the day prior.
Reacting, Checkmate, lead on-chain analyst at Glassnode, took to task those who had called for code-changing measures to prevent fees from rising so heavily in future.
As Cointelegraph reported, fees had surged as a result of ordinals inscriptions greatly increasing on-chain activity and demand for block space.
“24hrs later, the average fees paid per block has returned to ~1.0 $BTC per block. Imagine arguing to change Bitcoin rules for a short-term fee spike due to people using the chain in ways you don't agree with,” he tweeted alongside a chart.
“Trying to change the rules is the attack, not the inscriptions.”
Magazine: Unstablecoins: Depegging, bank runs and other risks loom
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
The Bitcoin mempool, otherwise known as the network’s transaction backlog, is still clogged with over 390,000 transactions waiting to be processed by miners. To clear the mempool, more than 190 blocks need to be mined. As the scaling issues continue to plague the network, a conversation between former Bitcoin developer Gavin Andresen and the network’s […]
Bitcoin transaction fees have surged significantly in the past 24 hours, with the average fee reaching $19.20 per transfer. The increase in fees can be linked to a backlog of transactions trapped in the mempool, as over 440,000 unconfirmed transactions are currently awaiting confirmation. Block Reward Dethroned: Bitcoin Transaction Fees Surpass Mining Subsidy for the […]
In just under two weeks, the number of unconfirmed transactions on the Bitcoin network has skyrocketed from 134,000 to over 390,000, causing a bottleneck in the mempool. This surge in unconfirmed transactions has resulted in a staggering 343% increase in transaction fees, which have risen from $1.99 per transaction on April 26 to a current […]
As of May 3, 2023, the Bitcoin blockchain has witnessed a staggering 3.35 million Ordinal inscriptions, and a new experimental token standard known as “Bitcoin Request for Comment,” or BRC20, has garnered substantial attention in the past week. With 10,487 BRC20 tokens built using Ordinals and a swelling market capitalization exceeding $95 million, this new […]