Bitcoin Miners enjoy windfall profits as transaction fees spike to highest level since April 2021 as Ordinals inscription explodes.
The Medium price of transactions on the Bitcoin blockchain rose more than $37 on Sunday, a level last seen in April 2021, at the height of the bull market, BitInfoCharts data showed, up from an Medium of $1 to $2 in September and early October.
The surge is largely driven by the resurgence of Ordinals, a protocol that allows users to store Non-Fungible Token on the Bitcoin blockchain known as inscriptions.
Users created more than 1.2 million new Ordinals inscriptions between Friday and Sunday, according to une Analytics data, clogging the network with about 300,000 transactions awaiting confirmation.
The popularity of Ordinals has Chia the Bitcoin community, with core developer Luke Dashjr calling the inscription “spammy” in need of repair. However, the sky-high fees have benefited BTC Miners .
Miners earn BTC through processing blockchain transactions, currently generating about $63 million in daily income from fees or $23 billion annually, nearly four times the two-year Medium , a report said today. Monday from 10x Research note.
“Even though Bitcoin is range-bound, BTC mining stocks are still doing well and are exploding with extremely high fees being generated,” said Markus Thielen of 10x Research, also head of research at Matrixport, said.
Cubic Analytics founder Caleb Franzen noted that BTC mining stocks could also benefit from the strong performance of the stock market.
