Bitcoin Fees Return to Normal: BRC-20 Tokens’ Hype Fades Away
After the recent attention on BRC-20 tokens utilizing Ordinals inscription to store new tokens on the Bitcoin (BTC) network, transaction fees reached their highest level since May 2021.
However, it appears that the fees are now returning to their previous levels.
According to a tweet and chart shared by a Twitter user named Bitcoin Archive on May 15, the average fees for processing and confirming Bitcoin transactions have dropped significantly. They have gone from over $30 per transaction on May 8 to a mere $3.76 per transaction.
#Bitcoin transaction fees plummet after inscription hype. 🤔 pic.twitter.com/Jc9yFSNBAF
— Bitcoin Archive (@BTC_Archive) May 15, 2023
The chart obtained from the analytics platform Ycharts shows that the current Bitcoin processing fees have decreased by 87.84% from the peak on May 8. They are currently lower than the fees on May 2, which were $7.15 per transaction, although they are still higher than the $2.95 fee on May 1.
Despite the increase in network fees during that time, Bitcoin experienced a notable increase in daily transactions, reaching a new all-time high (ATH) and surpassing a record set over five years ago, as reported on May 3.
READ MORE: Bitcoin: One Million Addresses Hold 1 BTC or More
Enrico Rubboli, the CEO of Bitcoin sidechain and scaling solution Mintlayer, expressed his skepticism towards BRC-20 tokens. In an op-ed written on May 9, he referred to them as “shitcoins” and criticized them for lacking value despite their attractive presentation.
Regarding Bitcoin’s price analysis, it is currently trading at $27,374, showing a 2.16% increase for the day. Bitcoin is attempting to recover from a 2.09% loss over the previous week and an accumulated drop of 10.05% in the last month.
Crypto analyst El_crypto_prof, also known as Moustache, has observed a pattern of higher highs and higher lows in Bitcoin’s price action. This pattern often leads to a parabolic rally, suggesting that Bitcoin may achieve a new ATH before 2025.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
