Bitcoin transaction fees have surged due to increased activity on Ordinals and BRC-20 transactions.
BTC is trading around $29,100, up nearly 1%, with strong support at $27,000.
Bitcoin recently reached a significant transaction fee milestone, largely due to contributions from Ordinals inscriptions and BRC-20 related transactions.
The recent surge in network fees has raised questions about the role of two growing Bitcoin features in driving the trend. How exactly are these features contributing to rising fees?
Bitcoin Fees Surge
According to data from CryptoFees, Bitcoin transaction fees have been rising in recent weeks. The upward trend began around April 23, and as of this writing, transaction fees have exceeded $3.3 million, peaking at over $3.5 million on May 3.
This fee surge is noteworthy as it marks the highest transaction level since May 2021. The driving force behind the recent development is the Ordinals inscription and BRC-20 transaction fees, which are the catalysts for the current fee surge.
Ordinal and BRC-20 effects
According to Dune Analytics, there has been a recent surge in Ordinals and BRC-20 trading activity. On May 4, there were over 188,000 BRC-20 transactions, attracting over 13 BTC worth over $396,000 at the time of valuation.
Additionally, Ordinal registration fees on May 4th exceeded 14.9 BTC, equivalent to over $431,000. Together, these two transaction fees contributed over $800,000 to total Bitcoin transaction fees on May 4th. At the time of writing, BRC-20 fees are over three BTC, while Ordinal fees are over five BTC.
As of this writing, Ordinals inscriptions total over 3.7 million, with a new daily transaction record of over 372,000 set on May 1. Total fees associated with these transactions currently exceed $9.1 million, with a new daily transaction fee of over 28 Bitcoin recorded on May 1. As for BRC-20 transactions, the total number exceeds 2.7 million, with total fees exceeding 135 BTC or nearly $4 million.
Bitcoin's current price trend
As of writing, BTC is trading around $29,100 on the daily chart, up nearly 1%. Resistance remains strong at the $30,000 price area, while support is also near the $27,000 price area. The relative strength index (RSI) confirms BTC’s bullish trend.
