Average Transaction Fees on Bitcoin Network Flip with Ethereum
Recent data shows that the average daily transaction fees on Bitcoin (BTC) have surpassed those of Ethereum, following an increase in Ordinals-related activity on the Bitcoin network.
As of November 20, data from BitInfoCharts indicated that the average daily transaction fee for Bitcoin was $10.34, while Ethereum’s transaction fees averaged $8.43.
About six days earlier, on November 16, Bitcoin’s average daily trading fee reached a new six-month high at $18.67, compared to Ethereum’s fees at $7.90.
The spike in Bitcoin transaction fees is due to a renewed market interest in assets registered with the Ordinals Protocol, a tool for creating NFT-like assets and BRC-20 tokens on Bitcoin. There was a significant lull in activity between September 25 and October 23, but activity surged in late October, resulting in over 6 million Ordinal assets created since October 24, leading to more than 800 BTC in fees redistributed to the network, valued at $30 million.
Impact on Binance and Taproot Wizards
The uptick in Ordinals inscription activity was compounded when ORDI, the second largest BRC-20 token by market cap, was listed on Binance on November 7, causing a wider wave of BRC-20 buying activity and a 50% jump in the price of the ORDI token. Furthermore, on November 17, the Ordinals-based project Taproot Wizards announced a $7.5 million seed round.
Hot Take: Cryptocurrency Fees
The surge in Ordinals-related activity on the Bitcoin network has resulted in a flip in the average daily transaction fees, with Bitcoin overtaking Ethereum. This activity has also had a ripple effect on Binance and Taproot Wizards, further driving market interest and transactions within the cryptocurrency space.
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