Bitcoin Fees Soar as Network Faces Data Backlog
Transaction fees within the Bitcoin network have surged considerably, eclipsing the figures recorded merely three days prior. A transfer deemed high-priority, which formerly cost an average of $3.38, now demands a fee of $8.46. This significant increase was recorded on Thursday, November 9, 2023, at precisely 9:52 a.m. Eastern Time. This upsurge coincides with a backlog exceeding 200,000 pending transactions in Bitcoin’s mempool, a situation attributed to both the escalated fees and a recent spike in Ordinal inscriptions.
Demand for Block Space Rises Dramatically
The demand for space in Bitcoin’s ledger has witnessed a sharp rise, compelling miners to face a daunting 429 megabytes of data backlog, equivalent to approximately 229 blocks. At block height 815,999, there is a logjam of around 201,646 transactions awaiting confirmation by miners.
Bitcoin Transaction Fees Surge Over 150%
Only three days ago, the fee to expedite a transaction with high priority was pegged at $3.38; since then, it has soared over 150% to its present price of $8.46 per transaction. This is in the wake of a staggering 4,000% hike in BTC fees the previous month.
Costs for Block Space Spike Due to Value Surge
Archived data from mempool.space shows that sending a bitcoin transaction without priority costs $0.74, while a low-priority transaction comes with a $6.51 fee. Medium priority transactions stand at approximately $7.56 as of Thursday.
The average bitcoin transaction fee is 0.00019 BTC or $7.17 and the median fee is 0.00011 BTC or $4.34 per transaction according to Bitinfocharts.com. The spike in costs for block space can be attributed to the recent surge in bitcoin’s value, which approached $38,000 around 9:50 a.m. Eastern Time on November 9.
Rising Costs for Block Space and Ordinal Inscriptions
Increased activity on exchanges and the processing of financial transactions are compounded by a rise in Ordinal inscriptions, which contribute to the growing backlog and escalating fee market.
Barefoot Mining CEO Predicts Continued Fee Increase
Barefoot Mining’s chairman and CEO forecasts a continued increase in BTC transaction fees and highlighted the growing expense of bitcoin transactions as the era of cheap block space draws to a close. He advises the consolidation of UTXOs and secure long-term storage solutions.
Hot Take: Bitcoin Transaction Fees Soar Amidst Data Backlog
The surge in Bitcoin transaction fees reflects the increasing demand for block space and comes amidst a significant backlog of pending transactions on the network. As Bitcoin’s value continues to rise, these trends are likely to persist, leading to higher fees for accessing the network’s ledger. It’s crucial for users to adapt their strategies for managing transaction fees and storage solutions as costs continue to rise.
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