The Average Commission on the Bitcoin Network Reaches Yearly High
The average commission on the Bitcoin (BTC) network has reached a yearly high, exceeding $37. This increase in blockchain fees is a result of heightened activity in the Ordinals segment, leading to increased demand for block space.
Ordinals Boom Drives Up Bitcoin Fees
In a similar situation that occurred in April-May 2023, the average commission reached $19 after the popularization of inscriptions on the Ordinals blockchain. Although the demand for Bitcoin NFTs decreased at that time, it grew again in Q3 2023.
Miners Benefit from Increased Income
Miners have greatly benefited from these commission increases, with their income reaching levels comparable to historical highs of around $69,000.
Challenges with Mass Cryptocurrency Adoption
Some users have expressed concern about the high network fees making mass cryptocurrency adoption difficult. However, according to influencer hodlonaut, Bitcoin’s network is not designed for this purpose, and high commissions serve as protection against attacks. The expert suggests utilizing second-layer solutions like Liquid Network or Lightning Network for accessible transactions.
Commissions Increase in Other Blockchains
Commissions have also risen in other blockchains that issue analogs of Ordinals. Gas consumption for operations with “inscriptions” in EVM networks reached $8.37 million, with Avalanche accounting for $5.6 million and Aribitrum One contributing $2.1 million.
Hot Take: Ensuring Sustainable Commissions in Bitcoin’s Design
The design of the Proof-of-Work consensus algorithm allows for a constant increase in value within the Bitcoin network, according to hodlonaut. The analyst argues that maintaining low commissions is impossible, as demonstrated by failed forks like Bitcoin Cash. As the demand for block space continues to rise, it becomes crucial to explore and implement scalable solutions to ensure sustainable transaction fees.
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