Wednesday, June 7, 2023

Memecoin hype drives Bitcoin transaction fees to multi-year highs


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Bitcoin transaction fees surged in early Could, reaching their highest level over the previous two years, in accordance to knowledge from Crypto Fees.

On Could 3, the whole quantity of fees paid on the Bitcoin blockchain reached an quantity of $3.5 million, leaping about 400% from late April. The common Bitcoin transaction payment reached as a lot as $7.2, in accordance to YCharts.

The continuing buying and selling frenzy of memecoins like Pepe Coin (PEPE) has triggered an undesirable consequence for Bitcoin (BTC), driving its transaction prices to multi-year highs.

Complete Bitcoin transaction fees between Could 2021 and Could 2023. Supply: CryptoFees

The most recent improve in BTC transaction fees is essentially attributed to a surge in Bitcoin exercise involving BRC-20 transactions. In accordance to knowledge from Galaxy Analysis, 50% of all Bitcoin transactions on Could 2 have been related to BRC-20 transactions.

Modeled after Ethereum’s ERC-20 token standard, BRC-20 is an experimental token customary permitting customers to challenge and switch fungible tokens on the Bitcoin blockchain. The usual was launched in March 2023 by a pseudonymous on-chain analyst often known as Domo.

The BRC-20 token customary has rapidly become a major trend in the cryptocurrency industry, particularly amid the sharp progress of the PEPE memecoin. The token has rallied greater than 600% over the previous seven days, reaching its all-time excessive of $0.00000216 on Could 5.

Pepe Coin (PEPE) 30-day value chart. Supply: CoinGecko

The Bitcoin blockchain isn’t the one blockchain affected by the ongoing memecoin hype. Gasoline fees on the Ethereum blockchain have additionally been skyrocketing to new multi-month highs not too long ago.

On Could 2, ETH transaction fees hit an combination quantity of greater than $19 million, a stage not seen since Could 2022, in accordance to CryptoFees. The Ethereum blockchain stays the costliest community when it comes to transaction fees on the time of writing.

Associated: Bitcoin miners have earned $50B from BTC block rewards, fees since 2010

Regardless of the newest spike in Bitcoin transaction fees, the present BTC transaction value continues to be removed from all-time excessive ranges. The highest Bitcoin transaction fees ever seen have been recorded in April 2021, when the common BTC transaction value virtually reached $70 amid a serious decline within the Bitcoin community hash fee. The earlier highest level in BTC transaction fees was in 2017, with transaction prices surging above $60.

Journal: Asia Express: Justin Sun’s SUI-farming sins, PEPE’s wild run, 3AC’s oyster philosophy