- Total network costs have increased by more than 100% in the past week.
- Ordinals transactions contributed more than $3 million in fees.
Bitcoin [BTC] has been on an upward trend over the past week, and an increase in transaction fees reflects this increase.
However, the increase in fees cannot be attributed solely to the price increase; rather, it is also influenced by a slight increase in the number of Ordinals transactions observed during the week.
How has the overall rate trend performed in light of the recent price increase?
Bitcoin double fees
Dates of InHetBlok showed that Bitcoin saw a notable increase in transaction fees this week, doubling from the week before.
One of the main factors contributing to this increase is the upward movement in the price of BTC, bringing it closer to $70,000.
This price increase in turn led to a significant increase in transaction volume, which reached the highest level in months.
AMBCrypto’s analysis of the volume chart on Santiment showed it exceeded $100 billion on March 5 and 6. The last time such a volume level was observed was in November 2022.
IntoTheBlock attributed the increase in fees not only to the price increase, but also to the recent increase in the number of Ordinals transactions.
How Ordinals’ transactions and fees have fared recently
AMBCrypto’s look at Ordinals inscriptions this past week revealed a significant increase.
Starting with approximately 48,000 daily registrations at the beginning of the week, daily registrations had increased to over 93,000 by March 8.
Source: Dune Analytics
Examination of the Ordinals fee paid during this period revealed that the daily average fee was approximately eight BTC. This translated into Ordinals fees contributing approximately $3.8 million to the total network costs for the week.
In addition, data from Dune Analytics showed that Ordinals has contributed more than $434 million in fees to date.
How Total Bitcoin Costs Have Developed
AMBCrypto’s analysis of the Bitcoin fee trend for the week showed that it started at around 46 BTC in daily fees. Around March 5, the daily cost rose to over 103 BTC.
However, by the end of the week, the daily fee had dropped to around 40.7 BTC.
Despite the drop in fees at the end of the week, an analysis of the chart showed that there were more daily fees compared to the week before.
Source: Glassnode
Bitcoin is getting closer to $70,000
AMBCrypto’s analysis of Bitcoin’s daily timeframe chart showed that it was about to break into the $70,000 price range.
How much are 1,10,100 BTCs worth today?
At the time of writing, BTC was trading at around $69,400, reflecting an increase of over 1%. The bullish trend continued, as evidenced by the Relative Strength Index (RSI) crossing above 75.
This also indicated that Bitcoin was still in the overbought zone. The potential breakout to the $70,000 price zone could trigger another surge in volume, potentially leading to a further increase in fees.
Source: trading view