NEW YORK - Bitcoin witnessed a significant surge in transaction fees on Friday, outshining Ethereum for the first time since late 2020. Data from Cryptofees revealed that Bitcoin's single-day transaction fees reached $11.6 million, surpassing Ethereum's fees of $8.5 million. This spike is attributed to a frenzy of activity in the Bitcoin network, particularly the use of Ordinals inscriptions, which embed media into transactions.
Despite this one-day spike, Ethereum maintains a higher weekly average in transaction fees at $9 million, compared to Bitcoin's $5.5 million. This indicates a broader trend where Ethereum generally leads in fee generation, which can have long-term implications for the digital currency landscape.
The increase in Bitcoin's transaction fees is part of a larger pattern of growth for the cryptocurrency. On Thursday, Bitcoin's average fee per transaction soared to $18.69, marking a dramatic rise from earlier in the month and reflecting its growing utility beyond its traditional role as a digital currency. The adoption of Bitcoin for non-fungible tokens (NFTs) and the success of Ordinals inscriptions are notable contributors to this trend.
This uptick in fees is also bolstering revenue streams for Bitcoin miners at a crucial time. With reduced block rewards and an upcoming halving event—a periodic reduction in the number of new bitcoins created and earned by miners—miners profitability is under pressure. The increased transaction fees serve as a vital support for miners, ensuring the continued health and security of the mining ecosystem.
The recent developments underscore Bitcoin's evolving role in the digital asset space and highlight its potential to compete with Ethereum not just as a store of value but also as a platform for innovation and transactions.
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