Market News

Bitcoin Transaction Fees Overtake Ethereum as Demand Soars

Bitcoin, Demand, Ethereum, Fees, Overtake, Soars, Transaction

As the demand for cryptocurrency transactions surges, Bitcoin fees have surpassed those of Ethereum, indicating the growing popularity and utility of the leading digital currency.

In a surprise move, Bitcoin’s 7-day transaction fees are stealing the spotlight, beating Ethereum and pointing to a renewed interest in on-chain assets. This change challenges Ethereum’s usual higher fees, marking a big shift in the cryptocurrency world.

As of November 20, Bitcoin’s average daily transaction fee was $10.34, more than Ethereum’s $8.43 for the same period. This fee surge reached a peak on November 16, hitting $18.67 for Bitcoin, while Ethereum stayed at $7.90 during that time.

Experts think the spike in Bitcoin fees might be linked to the comeback of Ordinal’s minting and trading. Or, it could be because more people are using Bitcoin for on-chain assets and the network is getting busier, adding a bit of mystery to the story.

Over the last five days, Bitcoin’s daily fees have consistently been higher than Ethereum’s. This shows that more people are interested in assets using the Ordinals Protocol. This protocol helps create NFT-like assets and BRC-20 tokens within the Bitcoin network.

After a period of relative inactivity between Sept. 25 and Oct. 23, Ordinals-based assets experienced a significant uptick in late October. Since Oct. 24, over 6 million Ordinal assets have been created, leading to the redistribution of more than 800 BTC in fees worth $30 million to the network.

Things really heated up when ORDI, the second-largest BRC-20 token by market cap, got listed on Binance on November 7. This set off a wave of people buying BRC-20 tokens, and the price of the ORDI token jumped by just over 50% on that day. Right now, the ORDI coin is trading at $20.45, with a market cap of $475 million.

This shift in transaction fees and the increased interest in on-chain assets within the Bitcoin network suggest a period of change and potential growth within the cryptocurrency world.

Leave a Comment