- Total network fees have increased by over 100% in the past week.
- Ordinals transactions contributed over $3 million in fees.
Bitcoin [BTC] witnessed an upward trend last week, and an increase in transaction fees reflected this increase.
However, the increase in fees is not solely due to the increase in prices; Rather, it is also influenced by a slight increase in ordinals transactions observed throughout the week.
How has overall fee trends evolved given the recent price increase?
Double Bitcoin Fees
Data from IntoTheBlock showed that Bitcoin saw a significant increase in transaction fees this week, doubling compared to the previous week.
One of the key factors behind this increase is the uptrend in BTC price, which is taking it closer to the $70,000 mark.
This price increase, in turn, led to a significant increase in transaction volume, reaching its highest level in months.
AMBCrypto's analysis of Santiment's volume chart showed that it crossed the $100 billion mark on March 5 and 6. The last time such a volume level was observed was in November 2022.
IntoTheBlock attributed the fee increase not only to the price increase but also to the recent increase in Ordinals transactions.
How ordinal transactions and fees have evolved recently
AMBCrypto's look at Ordinal inscriptions over the past week revealed a significant increase.
Starting with about 48,000 daily inscriptions at the beginning of the week, the number of daily inscriptions rose to over 93,000 by March 8.
Source: Dune Analytics
Examining the ordinal fee paid during this period revealed that the daily average fee was around eight BTC. This resulted in ordinal fees contributing approximately $3.8 million to the total network fees for the week.
Additionally, data from Dune Analytics showed that Ordinals has contributed over $434 million in fees to date.
How overall Bitcoin fees have evolved
AMBCrypto's analysis of Bitcoin fee trends for the week found that it started with around 46 BTC in daily fees. Around March 5th, daily fees rose to over 103 BTC.
However, towards the end of the week, the daily fee had dropped to around 40.7 BTC.
Despite the drop in fees at the end of the week, an analysis of the chart showed that there were higher daily fees compared to the previous week.
Source: Glassnode
Bitcoin is approaching $70,000
AMBCrypto’s analysis of Bitcoin’s daily timeframe chart showed that it was on the verge of breaking into the $70,000 price range.
How much is 1,10,100 BTC worth today?
At the time of writing, BTC was trading at around $69,400, up over 1%. The uptrend continued, as evidenced by the Relative Strength Index (RSI) exceeding 75.
This also signaled that Bitcoin was still in overbought territory. The possible break into the $70,000 price zone could trigger a new surge in volume, potentially leading to a further increase in fees.
Source: Trading View
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