Bitcoin’s 7-day average transaction fees have outpaced those of Ethereum, signaling a renewed interest in on-chain assets. This unexpected shift in transaction fee dynamics indicates a renewed interest in on-chain assets while challenging Ethereum’s traditionally higher fees.
Bitcoin Overtakes Ethereum
Bitcoin, the pioneering cryptocurrency, has witnessed a noteworthy uptick in transaction fees, with the average daily transaction fees on Bitcoin surpassing those of Ethereum.
On November 20, Bitcoin recorded an average daily transaction fee of $10.34, surpassing Ethereum, which posted an average fee of $8.43 for the same period.
Notably, Bitcoin’s average daily trading fee achieved a significant milestone on November 16, hitting a six-month high at $18.67. In contrast, Ethereum’s fees during this peak period were $7.90.
Perhaps prominent analysts suggest this surge in Bitcoin transaction fees is attributed to the resurgence of Ordinal’s minting and trading. While some believe that this is due to Bitcoin’s increasing adoption for on-chain assets and a surge in overall network activity.
Meanwhile, for over the last five days, Bitcoin’s average daily fees have consistently surpassed Ethereum’s, reflecting the market’s growing appetite for assets utilizing the Ordinals Protocol, an instrument for creating NFT-like assets and BRC-20 tokens on Bitcoin.
ORDI Price Surge
After a period of relative inactivity between Sept. 25 and Oct. 23, Ordinals-based assets experienced a significant uptick in late October. Since Oct. 24, over 6 million Ordinal assets have been created, leading to the redistribution of more than 800 BTC in fees worth $30 million to the network.
The surge in Ordinals inscription activity gained momentum when ORDI, the second-largest BRC-20 token by market cap, was listed on Binance on Nov. 7, as reported by Coinpedia.
The listing triggered a broader wave of BRC-20 buying activity, causing the price of the ORDI token to jump by just over 50% on the day. Currently, the ORDI coin is trading at $20.45 with a market cap of $475M.