Rising demand for Bitcoin-linked NFTs drives up transaction fees, benefiting struggling miners
Bitcoin transaction fees have seen a significant surge of nearly 1000% since August, largely due to the rising popularity of Bitcoin-linked non-fungible tokens (NFTs), known as Ordinals. The average transaction fees for using the Bitcoin blockchain are now at $6.84, up from a low of $0.64 in August. This surge in fees is providing a boost to struggling miners within the industry.
Ordinals, a type of Bitcoin-linked NFT, have seen a resurgence in popularity recently. This has led to an increase in the minting of Ordinals, with nearly 1.9 million inscriptions uploaded to the blockchain in the past two weeks. The demand for these NFTs has driven up transaction fees on the Bitcoin blockchain.
The surge in Bitcoin transaction fees has proved advantageous for bitcoin miners. Transaction fees on the blockchain now account for approximately 8.5% of their total revenue. This is a significant increase and provides a much-needed boost to miners who have been struggling in recent times.
Another significant development is that Bitcoin has now emerged as the leading blockchain in terms of NFT sales volume in the past 24 hours, displacing Ethereum. This is a major milestone for Bitcoin and indicates a shift in the NFT market.
In conclusion, the resurgence of Ordinals and the subsequent increase in Bitcoin transaction fees have had significant impacts on the Bitcoin ecosystem. This includes providing a boost to Bitcoin miners and establishing Bitcoin as the leading blockchain for NFT sales volume.