Bitcoin's transaction fees have reached their highest levels in six months. Per data from IntoTheBlock, they experienced a massive surge over the last three months.
This sudden increase in fees is largely attributed to the growing interest in Bitcoin Ordinals, a novel application of the Bitcoin network.
Bitcoin's fee surge
The increase in Bitcoin's transaction fees is both sudden and substantial. Over the past 30 days, there has been a 484.78% increase in fees, and a staggering 1865.88% rise over the past 90 days.
However, these fees are still below the 2023 peak of $54.8 million reached on May 8.
The all-time high was recorded on Dec. 18, 2017, which was the peak of the cryptocurrency's first mainstream bull run. Back then, the fees surpassed a staggering $103 million.
As reported by U.Today, Bitcoin has now overtaken Ethereum in terms of transaction fees for the first time in three years. This change is largely fueled by the emergence of Bitcoin Ordinals.
These non-fungible tokens (NFTs), unique to the Bitcoin network, have garnered significant interest. This contributed to the rise in transaction fees.
Until recently, Ethereum held the top spot in transaction fees, thanks to its diverse range of decentralized applications and the popularity of its NFTs.
However, Bitcoin's resurgence, particularly in the context of Ordinals, is reshaping the landscape.
The increase in Bitcoin's transaction fees comes at a crucial time for miners, especially with the upcoming halving event, which will reduce block rewards. Higher fees may offset the decrease in block rewards, potentially accounting for a significant portion of miners' revenue.