Bitcoin Adoption Surges Despite Rising Transaction Costs to Reach Annual Peak

Bitcoin Adoption Surges Despite Rising Transaction Costs to Reach Annual Peak

Bitcoin continues to assert its dominance over Ethereum in terms of daily transaction fees. According to CryptoFees data, the daily fees for Bitcoin averaged $10.65 million from November 16 to November 18, exceeding Ethereum’s average fee of $6.9 million over the same period.

BTC Transaction Fees Surge
Bitcoin’s average transaction fees have skyrocketed by over 1,000% to a peak of $18.67 on November 16, based on BitInfoCharts data. This surge reflects the market’s increasing optimism about a potential spot Bitcoin exchange-traded fund (ETF) approval in the US. Despite this, the SEC remains cautious, pushing back decisions on various Bitcoin ETF applications to 2024.

Bitcoin Increasing Adoption
Despite concerns that high transaction fees might discourage BTC users, on-chain data indicates the opposite. IntoTheBlock reports a new yearly high in Bitcoin adoption, reaching 67.62% this week. This spike signifies a rise in newly created active addresses, signaling an influx of new market participants. Additionally, the volume of BTC held by long-term investors has hit an all-time high, with over 1 million addresses owning more than 1 unit of Bitcoin. Santiment also reinforces these findings, noting an increase in smaller wallets with less than 1 BTC.

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Hot Take
Bitcoin is outpacing Ethereum in daily transaction fees, reflecting heightened investor interest in the leading cryptocurrency. The surge in Bitcoin’s average transaction fees is driven by market optimism about a potential spot Bitcoin ETF approval in the US. Despite high fees, Bitcoin adoption is on the rise, with an increase in active addresses and the volume of BTC held by long-term investors. These trends indicate growing interest and participation in the Bitcoin market, reinforcing bullish sentiments from industry figures like Strike CEO Jack Mallers.

Bitcoin Adoption Surges Despite Rising Transaction Costs to Reach Annual Peak
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