• BRC-20 transactions related to deploying, minting, and transferring tokens have surpassed non-ordinal transactions.
• Fees coming from Ordinals transactions have reached 61%, out of which 99.5% comes from BRC-20.
• Bitcoin transaction fees have reached their highest point in six years with Block 788695 recording the 5th highest block transaction fee in USD with $194k and 6.7 BTC.
Overview
The world of crypto is constantly evolving, and with the BRC-20 protocol investors are witnessing a significant change in the Bitcoin (BTC) ecosystem. On May 7th, the percentage of BRC-20 transactions reached a high of 65%, indicating its growing adoption in the Bitcoin network. Additionally, fees coming from Ordinals transactions have reached 61%, out of which 99.5% comes from BRC-20. Moreover, Bitcoin transaction fees have also reached their highest point since July 2021 with Block 788695 recording the 5th highest block transaction fee in USD with $194k and 6.7 BTC.
BRC-20 Transactions
According to researcher Tom Wan, BRC-20 has propelled Ordinals to the next level of adoption, and this has resulted in a surge in token related transactions such as deploying, minting, and transferring tokens surpassing non-ordinal transactions on May 7th when it hit 65%. This is due to the size of BRC-20 tokens being approximately 10 times smaller than image inscriptions causing lower mempool usage despite higher average transaction fees reaching $18.9 due to a long queue at the mempool requiring users to pay higher gas fee for their transactions to be settled by miners faster.
Benefits Of Adoption
One benefit that has been seen is an increase in revenue provided for miners as Ordinals fees have reached 61% out of which 99% comes from BRC-20 token related activities showing an increasing traction for this protocol within the Bitcoin network since March 2021 when compared with non -Ordinal activity levels .
Transaction Fees Increase
The spike in fees resulting from this increased activity has caused Block 788695 to record one of the highest block transaction fee at $194k and 6.7 BTC on May 7th reaching 31% making it one of the more costly blocks since July 2021 where it was previously between 1%- 2%. This could be a cause for concern for some but it should also be noted that these levels are still lower than what was seen prior to March 2021 even though they remain relatively high when compared historically .