Ordinals NFT popularity to blame

On-chain data from IntoTheBlock shows that Ordinals NFTs have pushed transaction fees on the bitcoin network to the highest level since November 2022.

Transaction fees on the bitcoin network have doubled over the past two weeks, going from a high of $0.77 on 29 January to a high of $1.95 on 10 February. The average transaction fee for the blockchain has also increased from $0.25 on January 30 to $0.73. CryptoQuant also noted that Ordinals NFT transactions boosted network activity to May 2021 levels when China banned crypto.

bitcoin network fee
Source: IntotheBlock

Ordinals NFTs Rise in Popularity

The increase in bitcoin network fees coincided with increased interest in the Ordinals NFT. A recent report from BitMEX Research revealed that over 10,000 NFTs were mined between December 14th and February 7th. During this period, Ordinals NFTs took up 526 megabytes (MB) of block space, with creators spending 6.77 BTC on transactions related to Ordinals.

bitcoin ordinals nft
Source: BitMEX Research

The interest in NFTs has also seen their value soar to new highs. nft now informed of Some of these NFTs were sold for as high as 11 BTC due to skyrocketing demand.

Still, not everyone is happy with the development of NFTs on the bitcoin network. One such critic is Lightning Network developer RenĂ© Pickhardt. pickhart believes that People are “wasting precious block space spamming JPEGs.”

Pickhardt’s comments cannot be ignored because according to BitMEX, Ordinals NFTs use over 70% of bitcoin’s total blockspace, while accounting for only 3% of all transactions. research,

Bitcoin (BTC) price dropped below $22,000

Despite rising interest in the Bitcoin Ordinals NFT, BTC price dropped below $22,000 after trading as high as $24,300 on February 2. The 12% decline coincides with the US Securities and Exchange Commission’s (SEC) enforcement action against crypto exchange Kraken.

bitcoin btc price
Source: BeInCrypto

BeInCrypto’s global head of news, Ali Martinez, pointed out that buying pressure has intensified after the recent price correction. Martinez confirmed Binance Futures traders have taken the plunge, About 62% of accounts on Binance Futures with open BTC positions were going long.


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