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According to data presented by crypto on-chain analytics firm Glassnode, the average fee for conducting transactions on the Bitcoin network has surged to its highest level in almost two years.
The average transaction fee on Friday was 0.00032814 BTC, up more than 10x from a drop to 0.00003161 on the 23rd.rd of April.
The current Bitcoin price is around $29,600, which means a transaction fee of around $10.
That’s more than a 10x increase from the average trading price below $1.00 on the 23rd.rd April (when Bitcoin was hovering in the low $27,000s).
Analysts say the surge in network fees has sparked a surge in transactions involving so-called BRC-20 tokens, sparking a new meme coin craze (other smaller meme coin rivals like PEPE and SPONGE record exponential gains in recent sessions).
Inspired by the highly successful ecosystem of ERC-20 crypto tokens that exist on the Ethereum blockchain, the experimental new BRC-20 token standard has taken Bitcoin by storm since its launch in March. .
This standard allows users to issue and transfer fungible tokens via the Bitcoin blockchain.
The BRC-20 outbreak didn’t just cause network charges to skyrocket.
Daily Bitcoin transactions hit an all-time high of around 680,000 earlier this week.
Meanwhile, rising fees have brought Bitcoin miners online.
Earlier this week, the Bitcoin network’s hash rate hit an all-time high of around 440 exahashes per second.
Also, new users seem to be joining the network as the BRC-20 epidemic grows.
Addresses with non-zero BTC balances hit a new record of over 46 million.
What’s next for BTC price?
With the growing BRC-20 movement expanding its “use cases,” signs of strength in the Bitcoin network should prove to be a long-term tailwind for the world’s largest cryptocurrency by market capitalization.
In the short term, however, Bitcoin appears to be more focused on macro and technical factors.
As for the latter, with the Fed’s rate hike cycle seemingly over, a rate cut cycle likely to begin later this year, and the U.S. banking crisis appearing to be snowballing, the risk lies with Bitcoin in the near future. seems to be trending upwards for
Given that Bitcoin has typically performed well in an environment of easing financial conditions, and since March there has been a surge in demand for “hard money” to replace traditional currencies, financial stability concerns It has led to safe-haven bids (which is why gold is back at the close). set a new record).
Meanwhile, Bitcoin’s short-term technicals also look solid.
Cryptocurrencies are exploring a bullish breakout of pennant structures that have been trapped since mid-April.
If Bitcoin can sustain above $30,000 in the next few days, it could quickly return to its annual high above $31,000.