Home NFTs Bitcoin Fees Hit $24m Amid Ordinals ‘NFT’ Craze

Bitcoin Fees Hit $24m Amid Ordinals ‘NFT’ Craze

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Bitcoin transaction fees jumped to $19 due to increased demand for block space with the creation of NFTs using the Ordinals protocol. According to the data, the total amount of registrations to date has reached 5,010,014, and the total commission of Ordinal has reached about $24,285,831 due to the NFT epidemic. dune analysis — cause congestion and blockchain backlog.

While bitcoin miners have benefited dramatically from the surge in ordinals, critics perceive that bitcoin NFTs will attack the network and undermine the peer-to-peer financial network enabled by the bitcoin blockchain. In addition, Bitcoin transactions are expensive and time-consuming to confirm, making it difficult for cryptocurrency enthusiasts to use Bitcoin for small transactions, and Salvador’s Cibo ATM system requires expensive gas. Unstable because of the charges.

Ordinals has sparked widespread use of the Bitcoin network’s Taproot update, which will take effect in 2021. This method of writing digital content onto the Bitcoin blockchain has generated a lot of hype, with vociferous Ordinal proponents claiming that writing is a game-changing experience for NFTspheres despite the above issues. .

Disabling Bitcoin Fees – Possible Solution

The Lightning Network will allow Web3 users to transact with far lower fees without waiting for confirmation on the underlying blockchain. Lightning users can quickly settle Bitcoin transactions with the underlying Bitcoin infrastructure whenever they want, while waiting for a convenient time to avoid high fees and congestion. For this reason, cryptocurrency exchange Binance is looking at ways to add Lightning functionality. Other exchanges such as OKX, Kraken and Bitfinex already support this second layer payment protocol built on blockchain. As a result, the number of Lightning channels and nodes has decreased over the past month, while the price of regular Bitcoin transactions continues to rise.

As more exchanges implement the Lightning feature, it will be interesting to see how the Bitcoin network adapts to the increased demand for Ordinal NFTs and prevents such high-value transactions.

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*All investment/financial opinions expressed by NFT PLAZA are based on the site moderator’s personal research and experience and are for educational material only. Individuals should thoroughly research any product before making any type of investment.

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