Daily transactions on Bitcoin hit a new record high amid growing interest in Bitcoin Ordinals. The post Bitcoin Daily Fees Surged to $3.5M as Ordinals Gain Popularity appeared first on Tokenist.
What are Ordinals?
The network fee capture on the Bitcoin blockchain spiked to a 2-year high of $3.5 million on Wednesday, according to CryptoFees.info. The Bitcoin fee capture now stands in second place behind Ethereum ($17.23m) after overtaking Uniswap ($2.32m).
These tokens, also known as Ordinal Inscriptions, refer to digital assets inscribed on a satoshi – the lowest denomination of a Bitcoin (BTC). Similar to NFTs, they allow creators and digital art collectors to establish verifiable ownership and provenance of digital assets, which has been challenging.
Ordinals’ recent rise in popularity follows the launch of the Bitcoin Request for Comment (BRC-20) token standard – a new, experimental standard developed to allow users to issue and transfer NFTs directly on the Bitcoin blockchain. BRC-20 attracted significant interest immediately after its launch, with its combined market cap recently skyrocketing to $137 million – a whopping 682% increase from $17.5 million last week.
Interest in Ordinals Contribute to a New Daily Record in Bitcoin Transactions
When users store and transfer NFTs on the Bitcoin network, they must pay a transaction fee to the network to process their transactions. As the demand for NFTs and other blockchain-based services grows, the number of transactions on the Bitcoin network increases, leading to higher chain fees.
On Wednesday, data from the Dune Analytics dashboard showed that total fees paid for Ordinal inscriptions exceeded 272 BTC, or around $7.6 million. On Monday alone, more than 372,000 inscriptions were created on the Bitcoin chain, leading to a new daily record in Bitcoin transactions of 682,281.
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