AssetsMay 31, 2023

BTC miners profited from the increase in transaction fees thanks to Ordinals

Revenues from transaction fees in the network of the oldest cryptocurrency increased significantly during May.

Bitcoin (BTC) miners are reaping significant benefits from the increase in transaction fees thanks to the high-profile Ordinals project. It is mainly due to this technological solution that there has been a significant increase in the overall activity in the network of the oldest digital currency. Interestingly, the reward that miners operating in the ecosystem of the most popular of the cryptocurrencies obtained in this way reached the highest level in about 2 years this month.

BTC miners multiply capital thanks to the demand for Ordinals

The Ordinals project, which was launched at the beginning of 2023, has gained immense popularity in the cryptocurrency environment. It is worth noting that quite recently the number of inscriptions crossed another psychological point, this time overcoming the barrier of 10 million. In addition, a new standard has also been created, specifically BRC-20, which provides the ability to quickly and easily issue tokens on the oldest cryptocurrency blockchain.

The increased activity in the Bitcoin network noted by analysts has led to a general congestion of the BTC network. Therefore, users who want to avoid a long wait for confirmation of processed transactions often decide to pay a higher than standard fee for miners. As a consequence, the average daily transaction fees on the Bitcoin network jumped to levels that have not been recorded for a very long time.

Data from BitInfoCharts clearly shows that on May 8 this year, to transfer BTC units from one crypto address to another, a user had to pay an average of over $30. Recently, however, there has been a significant reduction in these costs, as yesterday the average transaction fee was slightly above $3.6.

According to the latest information from The Block, the share of miners of the oldest cryptocurrency from transaction fees has been 14.3% since May 29 this year. It should be clearly noted that this is an increase of more than 11% compared to the values observed in April this year. As a consequence, miners' monthly revenue from Bitcoin mining approached $840 million.

Bitcoin with a clear sideways trend

There is no escaping the fact that the oldest cryptocurrency has been moving in a tight price range over the past few weeks. Its course experienced very little fluctuation. Over the past few days, Bitcoin has been passing from hand to hand between the level of $ 26.1 thousand and $ 28.4 thousand. Sentiment among investors in the market of the leading digital currency remains neutral, according to an indicator derived from the popular platform

As of today, investors have to pay just over $27.7 thousand for one Bitcoin. This means that at this price it is a long way from ATH, as it is still close to 60%. The spectacular increase in the popularity of the Ordinals project and tokens issued in the BRC-20 standard raises some uncertainty among the supporters of this digital currency. Some cryptocurrency market analysts express a strong belief that this harms the network due to the congestion, while others strongly support such solutions, explaining that it stimulates the activity of investors on this blockchain.