How Bitcoin Inscriptions drove transaction volumes, fees on network
- Inscriptions accounted for over 39% of transactions and fees on the Bitcoin network.
- BTC price declined by over 1% as volume remained neutral.
Recent reports indicated that the Bitcoin [BTC] network witnessed an unabated surge in inscriptions. These remarkable services on the network have been generating substantial transaction volumes and fees.
Inscriptions impact Bitcoin transactions and fees
Remarkably, inscriptions accounted for nearly 40% of all transactions on the Bitcoin network, as outlined in the report.
Furthermore, according to the chart provided by Glassnode, Inscriptions contributed approximately 25% of the total transaction fees generated.
Current transaction count and fees
Glassnode’s data revealed a surge in Bitcoin transactions in recent weeks, with notable spikes starting in April. These spikes propelled the transaction count to the highest level ever recorded on the Bitcoin network since its inception.
As of 31 May, the transaction count exceeded 420,000, although it had seen a subsequent decline, according to the chart. Nevertheless, it remained among the highest points for Bitcoin transactions.
Examining the fees on the Bitcoin network, it was evident that daily fees peaked at over $17 million around May 8. However, there was a subsequent decline, and as of this writing, daily fees amounted to over $2.2 million.
These transaction and fee records highlight inscriptions’ significant contribution, surpassing the regular daily volume. This increase in volume proved advantageous for miners operating on the network.
Bitcoin miners key into inscriptions season
The Miner Revenue chart observed on Glassnode indicated that miners were reaping the benefits of this Inscription season. In May, Miner Revenue experienced a substantial surge, surpassing 1,400 BTC.
Although it has since declined, the current revenue stood at an impressive 949 BTC. The spike in Miner Fees could also be attributed to the recent buzz surrounding Inscriptions and BRC-20 tokens. This further highlighted the impact of these developments on BTC mining.
Volume and price trend neutral
Despite the noteworthy contributions of Inscriptions transactions to the overall BTC transaction count, the volume metric has remained the same.
Santiment’s volume metric indicated that Bitcoin did not witness any significant transaction movement. As of this writing, the current transaction volume hovered around 15.6 billion.
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In addition, recent price charts revealed a downtrend in the price of Bitcoin on a daily timeframe. As of this writing, it was trading at approximately $26,900, experiencing a decline of over 1%.
Although there has been an increase in transactions in recent weeks, the price of Bitcoin was yet to initiate an upward trend, according to the most recent price charts.