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NEW YORK – The saw a sharp rise in transaction fees on Friday, surpassing the for the first time since the end of 2020. Data from Cryptofees revealed that Bitcoin transaction fees for a single day reached $11.6 million, surpassing Ethereum’s fees of $8.5 million. This spike is attributed to a frenzy of activity in the Bitcoin network, particularly the use of Ordinals, which embed media into transactions.
Despite this one-day spike, Ethereum maintains a higher weekly transaction fee average ($9 million) than Bitcoin ($5.5 million). This indicates a broader trend where Ethereum generally leads in fee generation, which may have long-term implications for the digital currency landscape.
The increase in bitcoin transaction fees is part of a broader trend of cryptocurrency growth. Bitcoin’s average transaction fees climbed to $18.69 on Thursday, marking a dramatic rise from earlier this month and reflecting its growing utility beyond its traditional role as a digital currency. Bitcoin’s adoption of non-fungible tokens (NFTs) and the success of Ordinals listings are notable contributors to this trend.
This fee increase also strengthens revenue streams for bitcoin miners at a crucial time. With the reduction in block rewards and the upcoming arrival of a halving event (periodic reduction in the number of new bitcoins created and earned by miners), miner profitability is under pressure. Increasing transaction fees is a vital support for miners, as it ensures the health and safety of the mining ecosystem.
Recent developments underscore bitcoin’s evolving role in the digital asset space and highlight its potential to compete with Ethereum not only as a store of value, but also as a platform for innovation and transactions.
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