Bitcoin Overtakes Ethereum in Transaction Fees on the Back of Renewed Ordinals Frenzy
Bitcoin (BTC) has recently surpassed Ethereum (ETH) in terms of average daily transaction fees, signaling a notable shift in the fee landscape. On November 20, Bitcoin's average daily transaction fee reached $10.34, while Ethereum's average fee stood at $8.43.
The upswing in Bitcoin transaction fees is a result of heightened activity surrounding the Ordinals Protocol, which enables the creation of NFT-like assets and BRC-20 tokens on the Bitcoin network. After a period of relative dormancy in late September to October, Ordinals-based assets experienced a significant surge in late October, according to Dune Analytics.
Since October 24, over 6 million Ordinal assets have been generated, leading to the redistribution of more than 800 BTC in fees (equivalent to $30 million) to the network. The momentum further escalated when ORDI, the second-largest BRC-20 token by market capitalization, was listed on Binance on November 7. This listing sparked increased buying activity of BRC-20 tokens, resulting in a price surge of slightly over 50% for the ORDI token.
In addition to the growing popularity of the Ordinals Protocol, the Taproot Wizards project, which is built on the Ordinals protocol, announced a seed funding round of $7.5 million on November 17.
Let us know what you loved about this article, what could be improved, or share any other feedback by filling out this short form.
