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The inception of Bitcoin Ordinals has brought new meaning to the prominent blockchain network. Following the Inscriptions process, each of the smallest unit of a BTC — Satoshi (SAT) — will now have more significance. The overall transaction fees over the Bitcoin network have surged in the past several months after the NFTs launch. But the declining graph of NFT sales across blockchains affected the Bitcoin NFT realm too.
According to Glassnode data, the dominance of Inscriptions in overall Bitcoin transaction fees saw a drop in the last past months. Currently, its share accounts for 26% of the total fees over the network.
Though the dominance of transactions fees over Inscriptions is still significant, it was more than twice when it was at its peak. Data suggests that at its peak during the ongoing month; it had approximately 62% share in the total fees share. The total fees accumulated through the transactions amount approx 1413 Bitcoin (BTC). Per the current BTC price, the revenue is equivalent to 38 million USD.
The significant transaction fee accumulated through the Bitcoin Inscription offerings came as a major source of revenue over the network.
Following the decline in the trading volume of NFTs over the blockchain network, miners’ revenue dropped. Given the increasing popularity and share in the revenue, mining income and profitability raised accordingly. In contrast, it dropped along with the decline in transaction fees.
Miners’ fees over the Bitcoin network fell as soon as trading of Bitcoin NFTs slipped. Although block rewards act as a primary source of revenue for miners, transaction fees additionally incentivize their efforts. The drop in transaction fees has a direct impact on their income.
Blockchain data shows a significant drop in the daily revenue of cryptocurrency miners. Several days before, it attained a height of 41.74 million USD which dropped to 23.37 million USD. A drop of over 45% in a matter of days.
In such circumstances, it becomes difficult for miners to maintain profitability. They turn to selling portions of their BTC holdings in order to earn profits, similar to what they did during the crypto winter. This cycle eventually leads to a sharp drop in price.
Regardless of transaction fees and revenue dropping for BTC miners, the leading cryptocurrency whales hold on to it. Recently, the long-term holders of Bitcoin hit the fresh all-time high.
Currently, Bitcoin (BTC) is trading at 27,368 USD after a 2% rise in the last 24 hours. During a similar timeframe, the trading volume reached 14.05 billion USD.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
