Analysts have recorded an increase in Bitcoin network activity

Network activity on the Bitcoin blockchain has peaked since the spring of 2021. Index of network activity of the analytical platform CryptoQuant showsthat activity on the bitcoin network reached its highest level since May 2021, and the number of daily transactions rose to 345 thousand, which was the highest since April 2021, writes RBC Crypto.

Analysts attribute the surge in activity to the popularity of the Ordinals protocol launched in January, which made it possible to manage NFTs in the blockchain of the first cryptocurrency. Non-fungible tokens increase the size of blocks on the network, and large blocks have a positive effect on network activity, CryptoQuant explains.

Prior to the launch of Ordinals, NFTs were mostly issued on the Ethereum blockchain. The new protocol allows you to download, buy, store and transfer tokens on the Bitcoin network. This not only affects the activity on the network, but also leads to an increase in transaction fees, that is, it increases the income of miners.

By data’s total Bitcoin transaction fees reached 24.3k BTC ($549 million) on Feb. 3 for the first time since Dec. 3 last year. As a percentage of the total amount of bitcoin mined, the figure for the first time this year rose to 2.5% on February 5.

First NFT collection, loaded on the Bitcoin blockchain using the Ordinals protocol – Bitcoin Punks are the original CryptoPunks on the Ethereum blockchain.

According to crypto-journalist Colin Wu, the download of the tokens has been successfully completed, and trading among the community members has begun. The current minimum price (floor price) of a token from the collection is about 0.4-0.8 ETH ($655-$1.3 thousand), the maximum NFT sale price has reached 9.5 BTC ($214 thousand).

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