Bitcoin fees have surged to a six-month high, causing concerns among users as Ordinals activity makes a strong comeback.
As of November 7, Bitcoin network fees have reached an average of $6.85 per transaction, marking a notable increase. This surge in fees has been attributed to the resurgence of Ordinals activity on the blockchain.
Ordinals, a term referring to non-monetary activity on the Bitcoin blockchain, made waves earlier this year, particularly with the creation of digital artifacts like NFTs.
This unconventional use of the blockchain garnered attention and some controversy among traditionalists.
In the months following its initial peak, Ordinals activity had dwindled, leading some to speculate about its sustainability. However, late October saw a resurgence in Ordinals activity, which coincided with the sharp increase in Bitcoin fees.
While miners stand to benefit from the renewed Ordinals activity, Bitcoin users are feeling the pinch of higher fees.
fees are determined by transaction size relative to the 4MB block limit, with larger transactions incurring higher costs. As Ordinals activities contribute to increased network demand, fees have risen significantly.
With Bitcoin’s continued evolution as a recognized asset, experts like Bob Burnett, chairman of Barefoot Mining, anticipate a continued rise in network fees.
Burnett suggests that Bitcoin holders may want to consider moving their coins into long-term storage to prepare for the expected surge in interest and activity.
The resurgence of Ordinals activity on the Bitcoin blockchain has brought with it a significant increase in network fees.
While this has sparked debates about the role of Ordinals in the Bitcoin ecosystem, it’s essential to consider the implications for users and miners alike.
As Bitcoin continues to evolve, finding solutions to the challenge of rising fees will be crucial for maintaining a healthy and efficient network.