bitcoin transaction fees have seen an unprecedented surge, doubling in just one week, as the market moves towards the coveted $70,000 mark. This increase cannot be solely attributed to the upward trajectory of bitcoin price, but is significantly influenced by the sudden increase in Ordinals transactions.
Ordinals: a driving force behind rate increases
Amid the fervor of the bitcoin price rally, bitcoin-ordinals-ordinal-nfts” target=”_blank” rel=”nofollow”>Ordinals Transactions have become a driving force behind rising transaction fees. Our in-depth analysis reveals that Ordinals, which began the week with approximately 48,000 daily registrations, saw an extraordinary increase, surpassing 93,000 on March 8.
This increase in daily signups has not only contributed to a substantial increase in fees, with an average daily fee of around eight btc, but has also added a staggering $3.8 million to the network's total fees over the course of the year. week.
bitcoin market cap currently at $1.3 trillion. Chart: TradingView.com
bitcoin fees break records, reflecting market dynamism
The bitcoin fee trend over the week has been nothing short of dynamic. While initial daily fees stood at around 46 btc, momentum accelerated around March 5, reaching an impressive 103 btc. Towards the end of the week, the daily rate decreased slightly to around 40.7 btc.
Despite the drop, the overall trend indicates a significant increase in daily fees compared to the previous week, showing the dynamism and resilience of the bitcoin market.
bitcoin's rise towards $70,000 and its domino effect
As bitcoin teeters on the edge of the $70,000 price range, the cryptocurrency market is on the verge of a possible breakthrough. At the time of writing, bitcoin was trading at around $68,950, marking abitcoin” target=”_blank” rel=”nofollow”> 10% increase in the last seven days.
bitcoin price action in the weekly chart. Source: bitcoin" target="_blank" rel="nofollow">Coingecko
A Closer Look at bitcoin Fee Surge
Examining the data provided by IntoTheBlock, it is evident that the recent rise in bitcoin fees is not simply a consequence of its price increase. The notable increase in transaction fees, which doubled compared to the previous week, is closely related to the bullish price movement of btc.
bitcoin fees more than doubled this week, with Ordinals-related transactions hitting a monthly high. pic.twitter.com/YXh9oMMYSK
– IntoTheBlock (@intotheblock) March 9, 2024
This move has driven transaction volumes to their highest levels in months, with NewsBTC analysis revealing staggering volume surpassing $100 billion on March 5-6, a level not seen since November 2022.
The Notable Contribution of Ordinals to bitcoin Fees
NewsBTC's detailed assessment of Ordinals transactions over the past week sheds light on this sector's notable contribution to rising bitcoin fees. With daily signups skyrocketing and daily fees averaging around eight btc, Ordinals has had a significant impact on the cryptocurrency landscape, contributing over $430 million in fees to date.
Featured image by Karolina Grabowska/Pexels, chart by TradingView
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