Bitcoin Transaction Fees Surpass Ethereum Amidst Ordinals Protocol Frenzy
The average daily transaction fees for Bitcoin (BTC) have surpassed those of Ethereum, indicating a surge in activity related to the Ordinals Protocol on the Bitcoin network. According to data from BitInfoChart, on November 20, the average daily transaction fee for Bitcoin was $10.34, while Ethereum’s fees averaged at $8.43. This marks a significant shift as Bitcoin’s average daily fees have been consistently higher than Ethereum’s in the past five days.
The sudden increase in Bitcoin transaction fees can be attributed to the growing demand for assets using the Ordinals Protocol. This protocol allows for the creation of nonfungible token (NFT)-like assets and BRC-20 tokens on the Bitcoin network. After a period of low activity between September 25 and October 23, the usage of Ordinals-based assets spiked in late October, as indicated by data from Dune Analytics.
Since October 24, over 6 million Ordinals assets have been created, resulting in more than 800 BTC in fees, equivalent to $30 million, being redistributed to the network. This surge in Ordinals inscription activity was further fueled by the listing of ORDI, the second largest BRC-20 token by market cap, on Binance on November 7. The listing sparked increased buying activity from traders, causing the price of the ORDI token to rise by over 50% on the same day.
Another significant development in the Ordinals ecosystem was the announcement of a $7.5 million seed round by Taproot Wizards on November 17. This further propelled interest and investment in the project, contributing to the ongoing frenzy surrounding the Ordinals Protocol.
As a result of these factors, Bitcoin has seen a surge in transaction fees, surpassing Ethereum’s fees in recent days. This trend highlights the growing popularity and adoption of the Ordinals Protocol, as well as the potential for Bitcoin to support a wider range of tokenized assets and decentralized applications.