Bitcoin Network Fees Surge Due to Ordinals, Boosting Miner Revenue

IconCrypto News Terminal21 Apr, 2024

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Bitcoin Network Fees Surge Due to Ordinals, Boosting Miner Revenue

Bitcoin network fees have surged to $80 million on April 20th due to the launch of Ordinals, a protocol for creating non-fungible tokens (NFTs) on the Bitcoin blockchain. This represents a 4x increase compared to the previous high recorded in December 2017. The average transaction fee on the Bitcoin network has also increased to $128. This surge in fees has helped Bitcoin miners earn more revenue ahead of the upcoming halving. While the block reward is set to be cut in half, fee revenue has increased by 1,200%. Ordinals has been developed as an alternative to the BRC-20 token standard. It allows users to create and transfer NFTs on the Bitcoin blockchain, which was previously not possible. Previously on 21 April 2024, Lucas Outumuro, head of research at crypto market data analytics platform IntoTheBlock, reported that Bitcoin network fees had reached $80 million due to the launch of Ordinals. He also noted that the average transaction fee had increased to $128 and that Ordinals had helped Bitcoin miners earn more revenue ahead of the halving.

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