I'd wanted to make a topic on this, but thank you for doing it. It's so pathetic on what is happening on the Mempool, I have two transactions awaiting confirmation as I write and I don't know how on earth I would part ways with a high fee for a little amount of money to be sent.
The ordinals issue is a valid problem here to buttress what you had iterated above, and I don't think this would go away very soon as the congestion is much now. I witnessed a high priority of almost $20 sat/vbyte which is so crazy.
Maybe within a month or two, my awaiting transactions would be credited...lol
Topic: Why BTC Transactions Fees are Skyrocketing? - page 2. (Read 282 times)
We have seen a huge increase in the transactions fee of BTC, even according to blockchair BTC fee Graph recorded a fee of around $31.46 and i have seen on many social media profiles, it exceeds more than that. So, the question is what caused this huge surge in tx fees?
And as of writing current tx fees according to priorities are;
Reasons Behind this Surge in Tx Fee of BTC
1. Huge Number of Unconfirmed Transactions:
As of writing, according to mempool, 431,788 tx are pending for validation, and according to "Difficulty Adjustment Bar" it's going to take 10 days to process them all as the rate of completion of each block is also increased from 10 minutes to 10.3 minutes and currently, it holds on 10.4 minutes per block and if it continues to increase then more transactions will have to spend more on fees.
To put it in simple words-->As a huge number of txs are needed to be processed thus there is a lot more work to do for validators and therefore fees are increasing.
But what caused a huge spike in Unconfirmed Transactions? Obviously, people were making a hell lot of transactions and thus amount increased but why a sudden increase happened? Does BTC is being accepted as a legal tender in the USA? (in your dreams). To answer all these questions we have to understand the concept of "BRC-20"
2. Hype of BRC-20 token's Impact:
If you guys don't know about BRC-20 then it's similar to ERC-20 and we can deploy tokens on the BTC blockchain by using "Ordinal Protocol" just like people can mint tokens on the ERC-20 blockchain. What is Ordinal Protocol? --> "Well it's quite a simple protocol that allows one to input or i should use the most used term "inscribe" some data into the BTC blockchain. Well, such as smart contracts for NFTs and these NFTs will definitely be of great importance for BTC maniacs as they are the first minted NFTs on the BTC blockchain.
As we have comprehended the BRC-20 token and to some extent understand the reason of the hype behind it (aforementioned), so do you know what are the current stats on it, allow me to share them with you.
If things were still blurry then the above stats might have opened your eyes, Actually, this hype brings airdrops proposals and many Airdrop hunters made huge profits out of it, such as the following one:
What Now?
As we have comprehended some factors, but my concerns are now, where are we going with it, some dude named Supernestnet, found a loophole in the ordinals of the BTC blockchain and was able to "inscribe" a number of data, images data, etc. into it and thus was able to make an NFT. How this problem will meet with a solution? Does this fee issue will encourage more Centralized Exchanges to halt withdrawals as Binance did? Why many are saying BTC will lose its value when the 10 days of pending transactions will pass?-->(is it because there will be less demand because till then there will be less demand as stats are already showing lesser trading volume).
And top of all the questions--> Did you also lose the chance of making profits out of BRC-20 tokens too? or i am alone? because to be honest i didn't care about them and they are now 2 months old and from then i didn't know a thing about it ( i guess my bad), i come to know about it due to the issue of high fees).
And as of writing current tx fees according to priorities are;
- No priority tx = 70 sat/vB -->$2.71
- Low Priority tx = 219 sat/vB --> $8.47
- Medium Priority tx =236 sat/vB --> $9.13
- High Priority = 251 sat/vB --> $9.71 --> It's fluctuating too much, like a few minutes before it was around $13.
Reasons Behind this Surge in Tx Fee of BTC
1. Huge Number of Unconfirmed Transactions:
As of writing, according to mempool, 431,788 tx are pending for validation, and according to "Difficulty Adjustment Bar" it's going to take 10 days to process them all as the rate of completion of each block is also increased from 10 minutes to 10.3 minutes and currently, it holds on 10.4 minutes per block and if it continues to increase then more transactions will have to spend more on fees.
But what caused a huge spike in Unconfirmed Transactions? Obviously, people were making a hell lot of transactions and thus amount increased but why a sudden increase happened? Does BTC is being accepted as a legal tender in the USA? (in your dreams). To answer all these questions we have to understand the concept of "BRC-20"
2. Hype of BRC-20 token's Impact:
If you guys don't know about BRC-20 then it's similar to ERC-20 and we can deploy tokens on the BTC blockchain by using "Ordinal Protocol" just like people can mint tokens on the ERC-20 blockchain. What is Ordinal Protocol? --> "Well it's quite a simple protocol that allows one to input or i should use the most used term "inscribe" some data into the BTC blockchain. Well, such as smart contracts for NFTs and these NFTs will definitely be of great importance for BTC maniacs as they are the first minted NFTs on the BTC blockchain.
As we have comprehended the BRC-20 token and to some extent understand the reason of the hype behind it (aforementioned), so do you know what are the current stats on it, allow me to share them with you.
If things were still blurry then the above stats might have opened your eyes, Actually, this hype brings airdrops proposals and many Airdrop hunters made huge profits out of it, such as the following one:
- $260 investment in pepe token has made dimethyltryptamine.eth a total of $7 million dollars --> can you believe that, No, Go look for yourself wait am i dreaming (hehe) he holds 2.56 Trillion pepe tokens and one pepe is around $0.000001834 which means he made a total of $463,826,862.36. (well all the big profits in pepe coin can be seen on the source link i provided.
What Now?
As we have comprehended some factors, but my concerns are now, where are we going with it, some dude named Supernestnet, found a loophole in the ordinals of the BTC blockchain and was able to "inscribe" a number of data, images data, etc. into it and thus was able to make an NFT. How this problem will meet with a solution? Does this fee issue will encourage more Centralized Exchanges to halt withdrawals as Binance did? Why many are saying BTC will lose its value when the 10 days of pending transactions will pass?-->(is it because there will be less demand because till then there will be less demand as stats are already showing lesser trading volume).
And top of all the questions--> Did you also lose the chance of making profits out of BRC-20 tokens too? or i am alone? because to be honest i didn't care about them and they are now 2 months old and from then i didn't know a thing about it ( i guess my bad), i come to know about it due to the issue of high fees).
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