Bitcoin transaction charges surged in early Could, reaching their highest level over the previous two years, in accordance with information from Crypto Charges.
On Could 3, the full quantity of charges paid on the Bitcoin blockchain reached $3.5 million, leaping about 400% from late April. The typical Bitcoin transaction price reached as a lot as $7.2, in accordance with YCharts.
The continuing buying and selling frenzy of memecoins like Pepe Coin (PEPE) has triggered an undesirable consequence for Bitcoin (BTC) — driving its transaction prices to multi-year highs.
The newest enhance in BTC transaction charges is primarily attributed to a surge in Bitcoin exercise involving BRC-20 transactions. In keeping with information from Galaxy Analysis, 50% of all Bitcoin transactions on Could 2 have been related to BRC-20 transactions.
Modeled after Ethereum’s ERC-20 token standard, BRC-20 is an experimental token commonplace permitting customers to difficulty and switch fungible tokens on the Bitcoin blockchain. The usual was launched in March 2023 by a pseudonymous on-chain analyst generally known as Domo.
The BRC-20 token commonplace has shortly become a major trend in the cryptocurrency industry, particularly amid the sharp progress of the PEPE memecoin. The token has rallied greater than 600% over the previous seven days, reaching its all-time excessive of $0.00000216 on Could 5.
The Bitcoin blockchain isn’t the one blockchain affected by the ongoing memecoin hype. Gasoline charges on the Ethereum blockchain have additionally been skyrocketing to new multi-month highs lately.
On Could 2, ETH transaction charges hit an combination quantity of greater than $19 million, a stage not seen since Could 2022, in accordance with Crypto Charges. The Ethereum blockchain stays the costliest community when it comes to transaction charges on the time of writing.
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Regardless of the newest spike in Bitcoin transaction charges, the present BTC transaction price remains to be removed from all-time excessive ranges. The highest Bitcoin transaction fees have been recorded in April 2021, when the typical BTC transaction price virtually reached $70 amid a significant decline within the Bitcoin community hash charge. The earlier highest level in BTC transaction charges was in 2017, with transaction prices surging above $60.
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