Bitcoin Transaction Fees Surpass Ethereum's Amid Ordinals Hype

Bitcoin transaction fees have surpassed Ethereum’s average daily fees following a surge in activity related to the Ordinals Protocol on the Bitcoin network. As of November 20, the average daily transaction fee for Bitcoin reached $10.34, while Ethereum’s average stood at $8.43, according to data from BitInfoCharts.

The recent spike in Bitcoin transaction fees is attributed to a renewed market interest in assets created with the Ordinals Protocol. This tool allows the creation of non-fungible tokens (NFT)-like assets and BRC-20 tokens on the Bitcoin blockchain. The surge in Ordinals-related activity began in late October, following a period of relative quiet between September 25 and October 23, according to Dune Analytics data.

Since October 24, more than six million Ordinal assets have been created, resulting in over 800 BTC in fees (approximately $30 million) being distributed to the network. The increase in Ordinals inscription activity intensified with the listing of ORDI, the second-largest BRC-20 token by market cap, on Binance on November 7. The listing triggered a broader wave of BRC-20 buying activity, leading to a more than 50% increase in the price of the ORDI token on that day.

In addition to the listing, the Ordinals-based project Taproot Wizards announced a $7.5 million seed round on November 17, further contributing to the heightened activity and interest in the Ordinals Protocol. The development signifies a shift in transaction fee dynamics, with Bitcoin temporarily surpassing Ethereum in daily fees amid the growing popularity of Ordinals-related assets.

By Habib Rahman

My professional background is in public relations and I am the founder of Cryptochating. My journey into blockchain technology started four years ago, and I haven't looked back since then. The future of decentralized technology is incredibly fascinating to me, and I am passionate about communicating how it will change the world.

Leave a Reply

Your email address will not be published. Required fields are marked *