Ordinals windfall boosts BTC miners' profits. Bitcoin network fees have exploded to over $37, the highest level since April 2021, with the rise in popularity of Bitcoin NFTs called Ordinals. This rise in transaction fees has proved to be a boon for listed Bitcoin miners, outperforming the range-bound Bitcoin price.
Record transaction costs
The average price of transactions on the Bitcoin blockchain has reached over $37, a level last seen in April 2021, at the peak of the bull market. This increase is mainly due to the resurgence of Ordinals, a protocol that allows users to store non-fungible tokens (NFTs) on the Bitcoin blockchain, known as registrations.
According to a Dune Analytics chart from crypto asset management company 21.co, users created over 1.2 million new Ordinals registrations from Friday to Sunday, clogging the network with around 300,000 transactions.
Higher costs, higher profits for miners
The rise of transaction fees represents an unprecedented opportunity for Bitcoin miners, who see this trend as a more lucrative source of income than the mere fluctuation of the Bitcoin price. Indeed, the rise in popularity of Ordinals, the protocol allowing NFTs to be stored on the Bitcoin blockchain, has intensified this dynamic. Bitcoin miners are recording unprecedented profits, propelled by the growing demand linked to the Ordinals frenzy.
Ordinals: Impact on Bitcoin Fees and Miners
The rise in transaction fees on the Bitcoin network to a 2-year high is mainly attributed to the surge in popularity of Ordinals, a protocol allowing users to store NFTs on the Bitcoin blockchain. This increase in transaction fees has resulted in exceptional profits for Bitcoin miners, outperforming the range-bound Bitcoin price.
As the market continues to evolve, it will be interesting to see how the Bitcoin ecosystem adapts to this growing demand for NFT storage and transaction capabilities.
