February 24, 2024
Bitcoin fees rise above Ethereum as investors flock to ordinals-backed assets


Cryptofees data shows that Bitcoin’s daily fees from November 16 to November 18 averaged $10.65 million, higher than Ethereum’s average fees of about $7 million for the same period.

Despite growing market optimism about the approval of spot Bitcoin exchange-traded funds (ETFs) in the US by 2024, the US Securities and Exchange Commission (SEC) is postponing a decision on several Bitcoin ETF applications.

This hesitation has coincided with a significant increase in the average transaction fees of the top cryptos, which have increased by more than 1,000% to a peak of $18.67 on November 16, according to BitInfoCharts data.

The average daily transaction fees for BTC, totaling $37,370, have seen a reversal with Ethereum. This change comes in the wake of increased activity related to ordinals on the Bitcoin network.

Bitcoin has overtaken Ethereum in terms of daily fees in the last five days. Source: BitInfoCharts

This fluctuation underlines the dynamic nature of transaction fees in the cryptocurrency sector, with Bitcoin experiencing notable changes in its fee landscape.

Contrary to concerns about the potential deterrent effect of increased transaction fees on Bitcoin users, on-chain data suggests an opposite trend.

a 123

Since the end of October, Ordinals inscriptions increased by approximately 6 million. Source: Dune Analytics

Addresses widespread adoption and growing

Recent data from IntoTheBlock shows a significant increase in Bitcoin adoption, which reached a new yearly high of 67.62% this week.

This increase in adoption is reflected in the increase of newly created active addresses, indicating a substantial influx of new participants into the market.

hcykRpqb

Bitcoin recaptured the $37K area. Chart: tradingview.com

Ordinals are gathering momentum

Additionally, the volume of Bitcoin held by long-term investors has reached unprecedented highs, with over 1 million addresses now holding more than 1 unit of Bitcoin.

Despite concerns about transaction fees, this data indicates a growing and strong interest in Bitcoin, as shown by both increased user participation and an increase in long-term holdings.

Since October 24, the network has redistributed approximately 800 BTC in fees, equivalent to $30 million, as a result of the production of approximately 6 million Ordinal assets.

Following the launch of ORDI (the second largest BRC-20 token by market capitalization) on Binance on November 7, the increase in Ordinals inscription activities picked up pace.

(The content of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Freepik

source: www.newsbtc.com

Leave a Reply

Your email address will not be published. Required fields are marked *