Analysis: Why Are Transaction Fees Rising on the Bitcoin Network?

In the blockchain network, where the leading cryptocurrency Bitcoin is traded, transaction fees have increased significantly in recent days. Crypto investors are wondering about the reason behind the rise in fees.

According to the current data of CryptoFees, which tracks transfer fees in blockchain networks, on April 23, 2023, the total daily transfer cost in the BTC network amounted to $380,000. The metric, which has increased since the end of the month, has exceeded the limit of $ 4,000,000 today.

The fact that Bitcoin appreciated only 5% between the two dates in question shows that the increase in commissions is not due to the BTC price. So why are transfer fees increasing?

Ordinals Event Rising!

According to on-chain data, Bitcoin Ordinals are behind the increase in transaction fees on the BTC network. The metric shared by Dune Analytics revealed that an average of 150,000 transactions were made on Ordinals in recent days.

The Ordinals protocol is a project that allows the creation of NFTs on the Bitcoin network.

BTC Price

Bitcoin, the largest cryptocurrency by market cap, spends the first week of May inactive.

The price war in the $30,000 region continues for BTC, which has gained only 0.5% since the first day of the week. We can say that the bulls will prevail if the blue zone, where the sellers are concentrated, is exceeded.