As Bitcoin NFTs, also known as Ordinals, gain popularity, network fees have increased to over $37, the highest level since April 2021.
Due to an increase in Ordinals inscriptions, transaction fees surged to their highest level since April 2021, rewarding Bitcoin (BTC) miners with windfall earnings.
According to data from BitInfoCharts, the average price of transactions on the Bitcoin blockchain increased from $1–$2 in September and early October to over $37 on Sunday, a figure last seen in April 2021, at the height of the bull market top.
The rebirth of Ordinals, a mechanism that enables users to store non-fungible tokens (NFTs) on the Bitcoin blockchain called inscriptions, is primarily responsible for the spike.
Recent spikes in bitcoin transaction costs on the weekend of December 16, 2023, have highlighted the network’s persistent scalability problems. This illustrates the antifragile characteristics of the network even though it also presents immediate challenges. The incident spurs creativity in the community and encourages the creation of solutions that improve the network’s ability to manage high transaction volumes sustainably.
At the beginning of the day, Bitcoin is exhibiting some weakness as its price is moving back toward the $40K plus range.
