The average daily transaction fees for Bitcoin (BTC) have recently surpassed those of Ethereum, signaling a significant shift in the cryptocurrency landscape. On Nov. 20, Bitcoin’s average daily transaction fee reached $10.34, while Ethereum’s fees averaged at $8.43, according to BitInfoChart data. This reversal in fees marks a substantial change from the status quo, as Bitcoin’s average daily trading fee had previously hit a six-month high of $18.67 on Nov. 16, compared to Ethereum’s fees of $7.90.
Bitcoin’s surge in transaction fees can be attributed to the increased activity related to the Ordinals Protocol on its network. The Ordinals Protocol is a tool used for creating non-fungible token (NFT)-like assets and BRC-20 tokens on the Bitcoin network. After a period of relative inactivity between Sept. 25 and Oct. 23, Ordinals-based assets experienced a significant uptick in late October, as reported by Dune Analytics data.
Since Oct. 24, over six million Ordinal assets have been created, leading to the redistribution of more than 800 BTC in fees, valued at approximately $30 million, throughout the network. This surge in Ordinals inscription activity corresponded with the listing of ORDI, the second-largest BRC-20 token by market cap, on Binance on Nov. 7. The listing prompted a wave of BRC-20 buying activity, resulting in a 50% price increase for the ORDI token on the day.
Furthermore, on Nov. 17, the Ordinals-based project called Taproot Wizards announced that it had secured a $7.5 million seed round of funding. These developments have contributed to the increased transaction fees on the Bitcoin network, showcasing the growing interest and activity surrounding the Ordinals Protocol and its related assets.
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The rapid growth in Ordinals-based assets and activities has propelled Bitcoin’s transaction fees above those of Ethereum, marking a notable shift in the cryptocurrency landscape. As the cryptocurrency market continues to evolve, the emergence of new protocols and assets is reshaping the dynamics of digital transactions. It will be interesting to observe how these developments impact the broader crypto ecosystem and pave the way for future innovations in the space.
