As the Bitcoin halving approaches, the network is experiencing a surge in demand, particularly from a group called Ordinals traders, which has led to higher transaction fees (90 sats/vByte of block space), averaging around $8.50 per transaction as per the data.
Ordinal traders are signing up for Bitcoin transactions more frequently, with over 162,000 transactions recorded in a single day, compared to the usual 90,280 per month, which led to an increase in “daily inscription fee spent,” reaching $1.24 million in just 30 days.
James Van Stratten, a lead analyst, wrote, “Been monitoring Bitcoin fees for the past few weeks now, and they are starting to rise again meaningfully. Bitcoin hasn’t flipped Ethereum fees in 2024; I think they might soon. Halving may be the catalyst.”
Most of these fees are from regular transactions, but there’s speculation that trading on the blockchain is increasing because of the upcoming halving event, which will reduce the rate at which new bitcoins are supplied by half.
Additionally, a new token standard called “Runes,” created by Casey Rodamor, the maker of Ordinals, will be launched on April 19, which could further drive up fees as people trade these tokens.
Similar to BRC-20 tokens, when Runes are launched, some predict that their trading could cause fees to soar to over $30 each.
TrustMachines CEO Muneeb Ali stated that the launch of Runes during the Bitcoin halving would kick off a trend of memecoins on Bitcoin. As the primary layer, L1 experiences high fees and activity, there’s a shift toward Bitcoin’s secondary layer, L2.
Also Read: Bullish Bitcoin Trend Persists Despite Pre-Halving Volatility
