Bitcoin transaction costs have seen a dramatic increase, with fees doubling within a single week. The market is now heading towards the $70,000 barrier. This increase is not solely due to the price of Bitcoin, but also the sudden surge in the number of Ordinals transactions.
Ordinals: Driving force behind Fee Escalation
The price of Bitcoin has been soaring. Ordinals The surge in transactional fees is largely due to the increase of transactions. Our in-depth analyses reveal that Ordinals saw a dramatic increase, exceeding 93,000 daily inscriptions by the 8th of March.
The surge in daily inscriptions not only led to an increase in fees of around 8 BTC per day, but also $3.8 million in total network fees.
Bitcoin market capitalization currently stands at $1.3 Trillion. Chart: TradingView.com
Bitcoin Fees Break Records Reflecting Market Dynamism
Bitcoin’s fee trends for the past week have been dynamic. The initial daily fee was around 46 BTC. However, around the 5th of March, the momentum accelerated, and the amount reached 103 BTC. The daily fee dropped slightly towards the end of the last week to 40.7 BTC.
Despite the decline in fees, the overall trend shows that the Bitcoin market is resilient and dynamic.
Bitcoin’s Ascent towards $70K and Its Ripple effect
The cryptocurrency market is poised to make a breakthrough as Bitcoin hovers on the cusp of $70,000. Bitcoin was trading around $68,950 at the time of this report. 10% increase in the last seven days.
Bitcoin Price Action in the Weekly Chart Source: Coingecko
Bitcoin Fee Surge: A Closer Look
IntoTheBlock data clearly shows that Bitcoin’s recent fee increase is not a simple result of the price surge. The recent increase in fees is closely related to the rise in BTC’s price.
Bitcoin fees have doubled over the past week. pic.twitter.com/YXh9oMMYSK
— IntoTheBlock (@intotheblock) March 9, 2024
This has led to the highest transaction volume in several months. NewsBTC’s analyses reveal that the volume on 5th and 06th March exceeded $100 billion.
Ordinals’ Remarkable Contribution To Bitcoin Fees
NewsBTC’s detailed analysis on Ordinals transactions during the past week sheds some light on this sector’s remarkable contribution to Bitcoin’s rising fees. Ordinals’ daily fees have been averaging eight BTC and daily inscriptions are on the rise. This has had a major impact on cryptocurrency, contributing more than $430 million to fees.
Chart from TradingView, image by Karolina Grabowska/Pexels
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Source: www.newsbtc.com
