Bitcoin transaction fees surge: This is what fueled the BTC uptrend

• Bitcoin’s transaction fees surged due to the increased activity of Ordinals and BRC-20 transactions.
•  BTC was trading at around $29,100, showing a gain of almost 1% with a strong support level at $27,000.

Bitcoin recently reached a significant transaction fee milestone, largely due to the contributions of Ordinals inscriptions and BRC-20-related transactions.

The recent surge in fees on the network has raised questions about the role of these two growing Bitcoin features in fueling this trend. How exactly have these features contributed to the upswing in fees?

– Read Bitcoin’s [BTC] Price Prediction 2023-24

Bitcoin fees surge

Bitcoin’s transaction fees have been on the rise in recent weeks, according to data from CryptoFees. The uptrend started around 23 April, and as of this writing, the transaction fee had exceeded $3.3 million, with a peak of over $3.5 million on 3 May.

This fee surge could be considered as noteworthy as it marked the highest transaction level since May 2021. The driving forces behind this recent development are the Ordinals inscriptions and BRC-20 transaction fees, which have been the catalysts for the current fee surge.

The Ordinals and BRC-20 effect

According to Dune Analytics, there has been a recent surge in activity for both Ordinals and BRC-20 transactions. On 4 May, there were more than 188,000 BRC-20 transactions, which attracted over 13 BTC worth over $396,000 at the time of valuation.

Additionally, the Ordinal inscription fee on 4 May was over 14.9 BTC, equivalent to over $431,000. These two transaction fees combined contributed over $800,000 to the total Bitcoin transaction fees on 4 May. As of this writing, BRC-20 fees stand at over three BTCs, while Ordinal fees are over 5 BTCs.

As of this writing, the total number of Ordinals inscriptions was over 3.7 million, with a new daily transaction record of over 372,000 set on 1 May. The total fees associated with these transactions currently stood at over $9.1 million, with a new daily transaction fee of over 28 BTCs recorded on 1 May. As for BRC-20 transactions, the total number was over 2.7 million, with a total fee of over 135 BTC or close to $4 million.

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Bitcoin’s current price trend

As of this writing, BTC was trading at around $29,100 on a daily timeframe chart, showing a gain of almost 1%. The resistance level was still strong in the $30,000 price zone, while its support was also firm around the $27,000 price zone. The Relative Strength Index (RSI) confirmed the bullish trend for BTC.

Source: TradingView