Bitcoin Transaction Fees Hit Six-Month High Amidst Ordinals Inscriptions Resurgence

By 0xGorki 11/10/23 2:30 PM

Bitcoin transaction fees have soared to a six-month high, experiencing a staggering 2,000% increase since their August low of $0.64, according to data from BitInfoCharts. As of press time, the average transaction fee for Bitcoin stands at $15.86, reflecting a notable spike in costs for users.

Market analysts are attributing this sudden surge in transaction fees to a resurgence in the popularity of Ordinals Inscriptions. Ordinal Inscriptions, digital assets inscribed on satoshis (BTC’s lowest denomination), gained significant attention earlier in the year, marking Bitcoin’s initial venture into the non-fungible token (NFT) space. However, interest in these assets waned as the market evolved.

The revival of interest in Ordinals comes on the heels of Binance listing ORDI tokens, associated with Ordinal Inscriptions, on its platform. This listing has prompted an impressive 290% surge in the value of ORDI tokens over the past seven days, according to CoinMarketCap data.

Dune Analytics data, compiled by dgtl_assets, reveals that the daily inscriptions on Bitcoin have surpassed 150,000 again after a brief lull between September and October. In total, approximately 39 million inscriptions have been minted, generating 2,346 BTC, equivalent to roughly $85.45 million, in transaction fees. This surge has propelled Bitcoin into the position of the second-largest blockchain by NFT sales volume, second only to Ethereum, as indicated by CryptoSlam data.

Bitcoin Ordinals Inscription Data | Source: Dune Analytics

While the renewed interest in Ordinals Inscriptions has brought excitement to the Bitcoin ecosystem, it has also resulted in an unprecedented rise in unconfirmed transactions on the network. Currently, there are over 150,000 transactions in the backlog, signifying the strain on the Bitcoin network due to the increased activity associated with Ordinals.

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