Bitcoin

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	<p>Bitcoin&#8217;s network is facing a backlog of transactions and higher fees due to an increase in BRC-20 memecoin minting on the BTC blockchain.</p>
<p>Axel Adler Jr, an analyst with CryptoQuant, <a href="https://cryptoquant.com/insights/quicktake/6459fb7b86317b3f85e45445-Bitcoin-under-siege-from-BRC-20-junk-coins-record-fees-and-thousands-of-unconfir?utm_source=twitter&amp;utm_medium=sns&amp;utm_campaign=Quicktake&amp;utm_content=AxelAdlerJr" rel="nofollow noopener" target="_blank">explains</a> that &#8220;BRC-20 does not utilize smart contracts and operates only with wallets supporting the <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/">Bitcoin</a> blockchain,&#8221; which is causing a surge in block space demand. As a result, the average fee per transaction has skyrocketed, reaching over $16 and peaking at $29 on May 9.</p>
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<p lang="en" dir="ltr">Bitcoin under siege from BRC-20 &quot;junk&quot; coins: record fees and thousands of unconfirmed transactions!  </p>
<p>&quot;Unlike conventional token standards, such as Ethereum&#39;s ERC-20, BRC-20 does not utilize smart contracts and operates only with wallets supporting the <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#Bitcoin</a> blockchain.&quot; <br />by… <a href="https://t.co/yCsrXGM38H" rel="nofollow" target="_blank">pic.twitter.com/yCsrXGM38H</a></p>
<p>&mdash; CryptoQuant.com (@cryptoquant_com) <a href="https://twitter.com/cryptoquant_com/status/1656052587353853952?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">May 9, 2023</a></p></blockquote>
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<p><a href="https://bitinfocharts.com/comparison/bitcoin-transactionfees.html#6m" rel="nofollow noopener" target="_blank">Bitinfocharts</a> data shows that the average transaction fees have spiked to $31 on May 8, compared to around $19 the day before.</p>
<p>In a remarkable event on May 8, the total fees per block momentarily outstripped the block subsidy reward of 6.25 BTC, a phenomenon not seen since 2017.</p>
<p>May 9 witnessed another historic moment when <a href="https://bitinfocharts.com/comparison/transactions-btc-sma7.html#6m" rel="nofollow noopener" target="_blank">Bitinfocharts</a> documented a fresh all-time high on the seven-day moving average for the number of Bitcoin transactions, reaching a peak of 534,000.</p>
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<p lang="en" dir="ltr">Love em or hate em, ordinals are definitely shaking things up. The number of transactions on the <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#bitcoin</a><img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f4f7.png" alt="📷" class="wp-smiley" style="height: 1em; max-height: 1em;" /> blockchain reached a new all time high yesterday of 534,000. <a href="https://t.co/NTWmPsdiLw" rel="nofollow" target="_blank">pic.twitter.com/NTWmPsdiLw</a></p>
<p>&mdash; Mati Greenspan (@MatiGreenspan) <a href="https://twitter.com/MatiGreenspan/status/1655984061951639558?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">May 9, 2023</a></p></blockquote>
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<p>However, these numbers may actually be higher than recorded, with <a href="https://bitinfocharts.com/comparison/bitcoin-transactions.html#6m" rel="nofollow noopener" target="_blank">Bitinfocharts</a> reporting two spikes over 600,000 daily transactions this month using raw values.</p>
<p>The site also recorded 598,000 BTC blockchain transactions on May 9, while Blockchain.com confirmed that the average transactions per block are at an all-time high of 3,961.</p>
<figure id="attachment_21491" aria-describedby="caption-attachment-21491" style="width: 1764px" class="wp-caption alignnone"><img decoding="async" class="wp-image-21491 size-full" src="https://crypto.ro/en/wp-content/uploads/2023/05/Bitcoin-Average-Transactions-Per-Block-min.png" alt="Bitcoin Average Transactions Per Block min" width="1764" height="528" srcset="https://crypto.ro/en/wp-content/uploads/2023/05/Bitcoin-Average-Transactions-Per-Block-min.png 1200w, https://crypto.ro/en/wp-content/uploads/2023/05/Bitcoin-Average-Transactions-Per-Block-min-300x90.png 300w, https://crypto.ro/en/wp-content/uploads/2023/05/Bitcoin-Average-Transactions-Per-Block-min-1024x307.png 1024w, https://crypto.ro/en/wp-content/uploads/2023/05/Bitcoin-Average-Transactions-Per-Block-min-768x230.png 768w, https://crypto.ro/en/wp-content/uploads/2023/05/Bitcoin-Average-Transactions-Per-Block-min-750x224.png 750w, https://crypto.ro/en/wp-content/uploads/2023/05/Bitcoin-Average-Transactions-Per-Block-min-1140x341.png 1140w" sizes="(max-width: 1764px) 100vw, 1764px" title="Rising popularity of memecoins causes concerns for Bitcoin 1"><figcaption id="caption-attachment-21491" class="wp-caption-text">Bitcoin Average Transactions Per Block | YChart</figcaption></figure>
<p>Despite the high number of transactions, a backlog of 400,000 unconfirmed transactions is keeping transaction prices elevated. On May 9, the total market capitalization of BRC-20 tokens reached over $1 billion.</p>
<p>The surge in memecoin minting has caused concern among Bitcoin core developers, who are considering taking action against BRC-20 tokens and <a href="https://crypto.ro/en/news/bitcoin-network-fees-skyrocket-as-ordinal-inscriptions-reach-7-6-million/">Ordinals, which they see as network spam</a>. The number of ordinal inscriptions has almost doubled from 2.5 million to 4.78 million in just over a week.</p>
<p>Miners, on the other hand, are benefiting from the increased fees, as profitability or hash price has gone up by 66% since the start of the month, signaling a profitable period for those maintaining the network.</p>

Rising popularity of memecoins causes concerns for Bitcoin

crypto.ro global

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