A 1,400% Jump in Transaction Fees

In November, the Bitcoin network experienced a surprising phenomenon: transaction fees soared by 1,400%. A detailed analysis of the data revealed that at the beginning of the month, fees totaled a modest $779,549. However, by November 17, this figure had jumped to a staggering $11.63 million, marking a 1,391% increase. The most notable thing is that this value continued to grow, reaching US$11,559 million.

This phenomenon is intrinsically linked to the growing popularity of ordinals, a new feature on the Bitcoin blockchain. Ordinals allow the inscription of digital assets, such as images and videos, into individual satoshis, the smallest denomination of Bitcoin. This advancement represents a revolution in the way digital assets are managed within the Bitcoin network, effectively introducing a form of non-fungible tokens (NFTs) into its ecosystem.

Analysis of Bitcoin transactions in November, carried out by Dune Analytics, showed that ordinal inscriptions dominated network activity. Most of these transactions involved embedding text in satoshis. To date, more than 41 million ordinal registrations have been made, generating fees totaling approximately 2,876 BTC, equivalent to approximately US$104.8 million.

This growing interest in ordinals suggests a significant shift in the Bitcoin transaction landscape, indicating an expansion of the cryptocurrency’s utility beyond its original purpose as a peer-to-peer electronic money system.

Analyzing ORDI’s performance since its listing, a consistently positive price trend is observed, despite some fluctuations. ORDI has remained above its initial listing price, with an increase of over 70% in value.

At the time of writing, ORDI was trading at $23.48, representing a 1.7% drop in the last 24 hours. At the same time, Bitcoin experienced a modest increase, trading at US$37,491.28, up 2.6% on the day.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.