The network experienced a significant increase in transaction fees, surpassing total fees last week, as users compete for block space during times of high network traffic. This congestion was driven by a combination of factors, including a Bitcoin price rally that saw the cryptocurrency peak over $38,500 before settling around $37,000, and a resurgence in Bitcoin Inscriptions, increasing the demand for network capacity.
The increase in transaction fees is notable, with Bitcoin miners benefiting from the increased costs. According to data from IntoTheBlock, Bitcoin garnered between about $52.6 million and $61 million in transaction fees in the week leading up to today, compared to about $61.5 million for Ethereum as reported by Glassnode.
The popularity of tokens, which allow tokens that do not have to be recorded on Bitcoin’s blockchain, has played a key role in rising fees. This trend has led to a significant increase in block space usage, with average Bitcoin transaction fees reaching $12.96 compared to Ethereum’s average of $7.52 in the week before Monday last week. However, as activity decreased two weeks prior to last Monday, Bitcoin fees dropped to an average of $2.56, while Ethereum fees remained higher at an average of $4.94.
The impact of high inscription costs is also reflected in the earnings of mining pools such as FoundryUSA, which reported that more than 12% of their total rewards from transaction fees this month could be attributed to these added costs. this increase. This highlights the significant financial impacts that network activity and congestion can have on the cryptocurrency mining industry.
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