Bitcoin Network Fees Reach a 6-Month High and Its Impact on Miners and Altcoins
Date: 2023-11-07 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
1. Increase in Bitcoin Network Fees:
Transaction fees on the Bitcoin network have reached a significant six-month high, causing concern and interest within the cryptocurrency community. The average level of payment costs is estimated at $6, indicating a growing demand for the Bitcoin network. This surge in fees has been partially driven by the increasing interest in so-called Bitcoin oracles, which are non-fungible tokens with information stored directly on the blockchain.
A substantial increase in the number of transactions associated with BRC-20 tokens has led to longer transaction confirmation times and, consequently, higher fees. Experts from GeniiData have noted that transactions involving the RATS token have created a significant backlog in the Bitcoin network's mempool, leading to an increase in commission costs. Currently, the Bitcoin network has more than 120,000 unconfirmed payment requests, significantly exceeding the level registered at the beginning of the previous month, which was only 30,000.
2. Benefits for Miners:
It's important to note that, in light of the rising fees, miners have reaped certain benefits. Cryptocurrency miners have seen significant increases in their earnings. According to data from the Glassnode service, on November 6th, 8.5% of cryptocurrency mining revenues were attributed to processing payment requests, representing the highest daily figure since the beginning of this year. This increase in miner income may incentivize more participants to join the Bitcoin mining process.
3. Influence of Global Energy Markets:
However, the cryptocurrency market continues to demonstrate its dependence on global energy markets. Today, the price of Brent crude oil fell below $84 per barrel, influencing the value of Bitcoin, which experienced a 1.5% decline within a day. The total capitalization of Bitcoin is slightly over $677 billion, with a daily trading volume reaching $13.08 billion.
4. Decline of Altcoins and Rise of Alternative Coins:
It's worth mentioning that major altcoins, such as Ethereum (ETH), have also experienced minor losses, with approximately a 1% decrease in their value. Currently, Ethereum is trading at around $1,875. Interestingly, amidst the decline of ETH and BTC, many alternative coins have strengthened their positions, indicating a variety of investment opportunities within the cryptocurrency market.
