Bitcoin transaction fees have skyrocketed, doubling in just a week as the market surges towards $70,000.
Ordinals: Driving the Fee Surge
The rise in Ordinals transactions has been a major factor in the fee surge. Ordinals are a new type of transaction that allows users to inscribe data onto the Bitcoin blockchain.
As the excitement around Ordinals has grown, so has the number of daily inscriptions. This has led to a substantial increase in fees, with the daily average fee now around eight BTC.
Bitcoin Fees Break Records
The fee trend for the week has been dynamic, with daily fees initially around 46 BTC and surging to an impressive 103 BTC around March 5th.
Despite a slight decline towards the end of the week, daily fees remain significantly higher than the previous week, reflecting the market’s dynamism.
Bitcoin’s Ascent Towards $70K
As Bitcoin approaches the $70,000 mark, the cryptocurrency market is on the brink of a potential breakthrough. At the time of writing, Bitcoin is trading at around $68,950, a 10% increase in the last seven days.
The Impact of Bitcoin’s Price Rise
While Bitcoin’s price rise has contributed to the fee surge, it is not the sole factor. The increase in transaction fees is also closely tied to the rise in Ordinals transactions.
As the price of BTC has increased, transaction volumes have reached their highest levels in months. This has further contributed to the fee surge.
Ordinals’ Contribution to Fees
Ordinals transactions have made a significant impact on Bitcoin fees. With daily inscriptions skyrocketing and daily fees averaging around eight BTC, Ordinals has contributed over $430 million in fees to date.
