Bitcoin Fees Soar Amid Ordinals Hype

After a flurry of activity on the Bitcoin network related to Ordinals, the average daily transaction fees on Bitcoin have flipped with Ethereum.

According to BitInfoChart data, on Nov. 20, the average daily transaction fee for Bitcoin was $10.34, while the average daily transaction fee for Ethereum was $8.43.

On November 16, the average daily trading fee for Bitcoin hit a new six-month high of $18.67, while the fee for Ethereum reached $7.90.

The market's renewed interest in assets bearing the Ordinals Protocol, a tool for creating BRC-20 tokens and assets resembling nonfungible tokens (NFTs) on Bitcoin, is the cause of the unexpected increase in transaction fees for Bitcoin.

According to Dune Analytics data, ordinals-based assets experienced an abrupt increase beginning in late October, following a notable dip in activity between September 25 and October 23.

More than six million Ordinal assets have been created since October 24, which has led to the redistribution of more than 800 BTC in fees, or approximately $30 million, to the network.

The increase in Ordinals inscription activity intensified when, on November 7, ORDI, the second-largest BRC-20 token by market capitalization, was listed on Binance.

The price of the ORDI token increased by slightly more than 50% on the same day as a result of the listing, which sparked a larger surge of BRC-20 buying activity from traders.

Furthermore, Taproot Wizards, a project based in Ordinals, announced a $7.5 million seed round on November 17.

Sources:

https://cointelegraph.com/news/bitcoin-fees-flip-ethereum-ordinals-comeback

https://bitinfocharts.com/comparison/transactionfees-btc-eth.html#3m

https://dune.com/dgtl_assets/bitcoin-ordinals-analysis

https://twitter.com/TaprootWizards/status/1725163116059627761