According to IntoTheBlock, an on-chain analytics firm, Bitcoin transaction fees have climbed four times since the previous quarter, the largest increase since the second quarter of 2021.
Per a graphic shared by IntoTheBlock, Bitcoin total fees in this quarter ended at $186 million, a 316% rise. Ordinals-related activity is mostly driving the rise.
Quarterly Update: #Bitcoin transaction fees increased 4x compared to last quarter, marking the highest increase since Q2 2021. The surge is primarily driven by Ordinals-related activity.— IntoTheBlock (@intotheblock) June 30, 2023
Stay tuned, we'll share more updates on this past quarter in the coming days. pic.twitter.com/sUuilxWBNN
Ordinals are the hot new thing in Bitcoin. Ordinal Inscriptions, like NFTs, work on the Ordinals Protocol, which allows users to embed data into the Bitcoin blockchain.
Over $55,230,835 in fees have been paid by inscription creators to date, according to Dune Analytics. There are also 14,363,646 total inscriptions at present.
Bitcoin is on track for its second consecutive quarterly rise, strengthening its grip on crypto markets as smaller coins suffer losses.
The largest digital asset is up nearly 9% from April to June, buoyed by hopes that BlackRock Inc., Fidelity Investments and others will succeed in their ambitions to launch spot Bitcoin exchange-traded funds in the United States.
Attempts by financial titans to develop ETFs, as well as other evidence of institutional crypto interest, have contributed to Bitcoin's 86% recovery by 2023.
Furthermore, a global cycle of monetary tightening is nearing its end, alleviating some of the biggest anxieties about the impact of rising rates on sentiment. Bitcoin began the year at about $16,000 and has surpassed major stock indexes by a large margin.
After achieving a new one-year high, Bitcoin soon dropped to a small trading range. The currency has traded in a range of approximately $1,500 since topping $31,410 last Friday.
At the time of writing, the largest digital currency was up roughly 1.31% to $31,043. Fidelity Investments became the latest company to register for a Bitcoin ETF on Thursday.