Nov 21, 2023

Ethereum’s Hype Returns as Bitcoin Transaction Fees Flip

Bitcoin Transaction Fees Overtake Ethereum Crypto as Ordinals Hype Returns on Crypto Daily.
Bitcoin transaction fees flip Ethereum’s as Ordinals hype returns

Bitcoin and Ethereum Transaction Fees

The Ordinals Protocol has sparked a flurry of activity on the Bitcoin network, resulting in a reversal of the average daily transaction fees between Bitcoin (BTC) and Ethereum.

Data from BitInfoChart shows that on November 20th, Bitcoin had an average daily transaction fee of $10.34, while Ethereum had an average of $8.43.

Bitcoin’s fees hit a six-month high of $18.67 on November 16th, while Ethereum’s fees peaked at $7.90.

The surge in Bitcoin transaction fees is attributed to the Ordinals Protocol, a tool used to create nonfungible token (NFT)-like assets and BRC-20 tokens on Bitcoin.

Ordinals-Based Assets Uptick

Data from Dune Analytics shows that after a period of dormancy between Sept. 25 and Oct. 23, Ordinals-based assets experienced a sharp rise in activity in late October.

Since Oct. 24, over 6 million Ordinal assets have been created, resulting in more than 800 BTC in fees being redistributed to the network — a figure amounting to approximately $30 million.

The surge in Ordinals-related activity was further amplified when ORDI, the second largest BRC-20 token by market cap, was listed on crypto giant Binance on Nov. 7. This listing caused a widespread buying frenzy of BRC-20 tokens, with the price of ORDI rising more than 50% on the day.

Adding to the momentum, the Ordinals-based project Taproot Wizards announced a $7.5 million seed round on Nov. 17.

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