Bitcoin has taken the lead over Ethereum in terms of average daily transaction fees due to a recent surge in Ordinals-related activity on the Bitcoin network.
According to BitInfoChart data, as of November 20th, the average daily transaction fee for Bitcoin reached $10.34, while Ethereum’s fees averaged $8.43.
Bitcoin’s average daily trading fee hit a six-month high on November 16th, peaking at $18.67, while Ethereum’s fees reached $7.90.
This shift marks a significant change in the fee dynamics between the two cryptocurrencies over the past five days.
The sudden increase in Bitcoin transaction fees can be attributed to a growing interest in assets built on the Ordinals Protocol.
This protocol enables the creation of non-fungible token (NFT)-like assets and BRC-20 tokens on the Bitcoin blockchain.
After a period of relatively low activity between September 25th and October 23rd, Ordinals-based assets began to see a substantial uptick in late October, according to data from Dune Analytics.
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Since October 24th, over six million Ordinal assets have been created, resulting in more than 800 BTC in fees, equivalent to approximately $30 million, being distributed across the network.
This surge in Ordinals-related activity gained momentum when ORDI, the second-largest BRC-20 token by market capitalization, was listed on Binance on November 7th.
The listing triggered increased buying activity for BRC-20 tokens, causing the price of the ORDI token to soar by more than 50% in a single day.
In addition to these developments, on November 17th, the Ordinals-based project Taproot Wizards announced a successful seed round, securing $7.5 million in funding.
This announcement further solidified the interest and investment in Ordinals-based assets and projects on the Bitcoin network.
As Bitcoin continues to outpace Ethereum in terms of transaction fees, it reflects the growing popularity and utility of Ordinals-based assets and the broader adoption of blockchain technology for creating and trading digital assets.
These developments highlight the dynamic nature of the cryptocurrency ecosystem and the constant evolution of its use cases and applications.
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