Transaction fees on the Bitcoin network skyrocketed to nearly $20. The last time they were at this level was in April 2021.
Fees are rising amid growing interest in the Ordinals protocol and increased demand for BRC-20 standard tokens issued on the BTC blockchain.
Transaction fees hit $19.21 at the start of the week, according to Ycharts. Analysts note that in April 2021, fees soared to $62 due to an increase in the number of users wishing to send funds over the blockchain.
The Ordinals protocol was released in January 2023 by developer Casey Rodarmore. On the bitcoin network, users were able to stake non-fungible tokens with the help of this update, which triggered a surge in transactional activity.
Since the release of Ordinals on Bitcoin, more than 3 million tokenized images have been released, according to Dune Analytics.
BTC on the night of Tuesday, May 9, fell to $27,486. Cryptocurrency capitalization fell by more than 5% this week to $532.373 billion.
The pressure intensified after bitcoin failed to reach $30,000. Some observers do not rule out a rollback to $25,000 and subsequent consolidation of the digital currency before a breakthrough.