Bitcoin transaction fees have reached their highest levels in two years due to the growing demand for block space fueled by the rise of ‘Bitcoin Request for Comment’ (BRC-20) tokens and the increasing popularity of the Ordinals protocol.
During European trading hours on Monday, average transaction fees on the Bitcoin network stood just below $20, a significant increase from the previous week’s average of $1.20. Similar fee levels were last observed in May 2021 when Bitcoin prices reached an all-time high of $60,000.
Data from Dune Analytics reveals that the number of non-fungible tokens (NFTs) associated with the Bitcoin blockchain surpassed 3 million last week following a surge in activity, primarily consisting of text-based assets.
These tokens, known as inscriptions, operate on the Ordinals Protocol, which enables users to embed data into the Bitcoin blockchain by including references to digital art within small Bitcoin-based transactions.
The rising popularity of BRC-20 tokens and the Ordinals protocol highlights the increasing demand for unique digital assets on the Bitcoin network.
As more users seek to interact with these tokens and protocols, the demand for block space has surged, resulting in higher transaction fees. The recent fee spike reflects the growing interest in Bitcoin-based meme coins and their underlying technologies.
The surge in fees and the proliferation of meme coins underscore the dynamic and evolving nature of the cryptocurrency market.
Bitcoin, as the leading blockchain platform, continues to attract innovative projects and applications, driving its prominence in the digital asset ecosystem.
As the industry progresses, it remains essential for participants to monitor fee trends and blockchain developments to navigate the evolving landscape effectively.
(Note: This article is for informational purposes only and does not constitute financial advice. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of vTrader.)
Written By Anthonymark
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