Bitcoin Transaction Fees Surge By 117.3% In One Day Due To NFT Demand
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WhaleWire stated that the emergence of Ordinals, a new type of Bitcoin NFT, has led to a surge in transaction fees on the Bitcoin blockchain, resulting in over 450,000 pending transactions.
Due to the emergence of #Ordinals (Bitcoin NFTs), over 450,000+ transactions are now stuck/pending on the #Bitcoin blockchain, as fees have surged to new highs.
It now cost on average $19.21 per $BTC transaction, but many exchanges are charging $60+ to process them. pic.twitter.com/aTI7ccXlrH
— WhaleWire (@WhaleWire) May 8, 2023
Currently, the average transaction fee for Bitcoin stands at $19.21, significantly higher than $2.135 a year ago and $8.841 just one day ago – representing an increase of 799.8% from one year ago, 117.3% from yesterday.
Bitcoin Average Transaction Fee measures the average fee in USD when a miner process and confirms a Bitcoin transaction. During periods of network congestion, such as during the 2021 Crypto boom, these fees can spike. In 2021, fees reached over $60.
The current surge in transaction fees is likely due to the growing demand for Ordinals and other NFTs and the increasing popularity of Bitcoin. As more users compete to process their transactions by miners, fees increase due to limited space in each block.
Some exchanges charge over $60 to process transactions, which may be too high for some users. However, it is important to note that these fees are not set by the exchanges but rather by the market demand for Bitcoin transactions.
While high transaction fees can frustrate users, they also serve as an important incentive for miners to prioritize and process transactions efficiently. As the king of cryptocurrency continues to evolve, it will be interesting to see how transaction fees and other aspects of the network adapt to meet the demands of its growing user base.
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