Bitcoin Transaction Fees Spike Amid Rising Backlog and Relentless Ordinal Inscription Trend

Bitcoin transaction charges have surged once more. On Dec. 6, 2023, bitinfocharts.com reported that the common value of a bitcoin transaction soared to $27.55. Presently, the common transaction price hovers round $13.93, alongside a rising backlog of unconfirmed transactions, at present at 249,000 on the time of this report.

Rising Backlog Drives Sharp Increase in Bitcoin Transaction Fees

The Bitcoin mempool, which logs unconfirmed transactions awaiting miner verification, at present has 249,000 transactions pending verification. This rise in unconfirmed transactions coincides with a rise in Ordinal inscriptions, which devour block house together with monetary transactions. As of now, 287 blocks or 493 megabytes of block house should be cleared to scale back the backlog.

Daily, Ordinal inscriptions are consuming over 50% of transactions, with the tally as of as we speak reaching 47.77 million inscriptions on the Bitcoin blockchain. Although transaction charges briefly fell to between $5 and $7 per switch round Nov. 26 till Dec. 2, they skyrocketed within the following week. By Dec. 6, the common onchain price had jumped to $27.55 per transaction, and the median price rose to $17.70.

Currently, the common price stands at 0.00033 BTC or $13.93, whereas the median price is 0.00025 BTC or $10.75 per transaction. On Dec. 13, Glassnode’s lead onchain analyst, referred to as “Checkmate,” commented on the total mempool and the discontent it has triggered amongst some Bitcoin customers. Checkmate famous that inscriptions, primarily small textual content recordsdata, make up about 50% of day by day transactions however lower than 10% of block knowledge measurement.

Despite this, the analyst mentioned that they considerably contribute to transaction charges, accounting for 20% to 40% of the whole. These inscriptions profit from the Segregated Witness (Segwit) low cost, making them extra space-efficient in Bitcoin blocks, as Checkmate highlighted. The analyst’s key level was that inscriptions increase worth and price effectivity inside the present block measurement, thereby aiding the Bitcoin community.

“Your opposition is solely ideological and subjective. Fortunately, Bitcoin has a set of consensus guidelines that are goal and don’t reply to our emotions or subjective values,” concluded the analyst.

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