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Recent Surge in Ordinal Inscriptions Leads to New Highs in Transaction Fees
- Bitcoin network experiences a sudden congestion resurgence with over 157,000 pending transactions.
- High-priority transaction fees hit $3.38, marking a 4,000% increase in just a month.
- Comparative analysis reveals Bitcoin’s fees now surpass Ethereum’s, raising concerns about the broader cryptocurrency market.
The Bitcoin network is currently experiencing a resurgence of congestion, leading to a notable increase in transaction fees. In this post, we’ll dive into the reasons behind this surge and its impact on Bitcoin users.
Since October 24, Bitcoin has been witnessing a resurgence of transaction backlogs. This phenomenon marks a departure from the relative calm experienced after September 15. The number of pending Bitcoin transactions in the mempool has surpassed 157,000, causing high-priority transaction fees to reach $3.38.
The Peak of Congestion on November 6, 2023
As of November 6, 2023, the Bitcoin network finds itself in a state of congestion, with 157,101 transactions awaiting confirmation. This is a significant increase from the situation in mid-September when the network grappled with over 700,000 pending transactions.
The contrast between November 6, 2023, and mid-September is stark. Bitcoin miners had managed to reduce the backlog to a mere 27,210 by October 3, with high-priority fees plummeting to just $0.08 per transaction. However, the recent spike in transaction backlogs has brought us to a new peak.
The Impact of Ordinal Inscriptions and Soaring Fees
The recent spike in Ordinal inscriptions, particularly on November 4, played a significant role in driving up Bitcoin transaction congestion. This day recorded the second-highest daily total for such entries, with 440,760 additions, making it one of the busiest days for Bitcoin, processing 698,917 transactions. November 5 continued the momentum with another 403,026 inscriptions.
The flurry of activity, resulting in over 800,000 transfers within two days, inflated the mempool backlog. By the end of November 5, there were over 166,000 pending transactions, leading to high-priority transaction fees climbing to $1.86. The following day, the pending count remained above 157,000, with fees for expedited processing at $3.38 and standard transactions costing $0.49. According to bitinfocharts.com, the average transaction fee is now 0.00011 BTC or $3.71, with the median fee at 0.000061 BTC or $2.12 per transaction.
Notably, the average cost for Bitcoin block space now exceeds the median Ethereum (ETH) fee. Ethereum’s median fee stands at 0.0014 ETH or $2.66 per transaction. This data reveals a significant 4,125% increase in high-priority transaction fees from October 3 to November 6, 2023.
The surge in transaction fees and congestion on the Bitcoin network raises important questions about the impact on users and the broader cryptocurrency market. This situation could affect the ease and cost of conducting Bitcoin transactions and may lead to changes in user behavior and investment decisions.
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