Bitcoin Fees Hits 6-month High as Bitcoin Ordinals Revives
Bitcoin transaction cost is at its highest in 6 months due to new NFT demand.
Bitcoin fees hit 6-month peak, with average costs nearing $6. The surge comes as Bitcoin Ordinals, a form of NFTs, return to popularity, filling up space on the blockchain and driving fees higher.
Ordinals, which embed data in Bitcoin's blockchain, are creating a traffic jam in the system, known as the mempool. This leads to more expensive and slower transactions for everyone.
Nearly 1 million new Ordinals were created in just a week, with projects like BEES and HALV being the most active. Bitcoin's mempool is backlogged with over 120,000 waiting transactions, a significant jump from just 30,000 at October's start.
This rush benefits Bitcoin miners who see a boost in earnings from fees, with 8.5% of their income now coming from fees, a high not seen since June.
