In recent weeks, the Bitcoin network has experienced a significant uptick in transaction fees, attributed to the growing popularity of NFT-like Ordinal assets and BRC-20 tokens. The surge in activity has culminated in more than 6 million new Ordinal assets being inscribed, generating over $30 million in BTC network fees from October 24 to today.
On November 16, Bitcoin fees hit a six-month peak at $18.67. This was followed by a notable investment in the space, with Taproot Wizards securing a seed investment of $7.5 million on November 17. The momentum continued, and by Sunday, Bitcoin's average daily transaction fee had surpassed Ethereum's for the first time in recent memory, reaching $10.34 compared to Ethereum's average of $8.43.
The increased interest in these digital assets has also impacted cryptocurrency trading. Following the Binance listing of the ORDI token on November 7, its price saw an increase of over 50%, which further fueled trading activity and contributed to the rise in transaction fees.
The trend towards higher fees comes after a period of decreased activity between late September and October, suggesting a renewed vigor within the cryptocurrency community towards innovative uses of blockchain technology such as Ordinals and new token standards like BRC-20.
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