Memecoin hype drives Bitcoin transaction charges to multi-year highs

Bitcoin transaction charges surged in early Might, reaching their highest level over the previous two years, based on knowledge from Crypto Charges.

On Might 3, the full quantity of charges paid on the Bitcoin blockchain reached $3.5 million, leaping about 400% from late April. The common Bitcoin transaction charge reached as a lot as $7.2, based on 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.

Whole Bitcoin transaction charges between Might 2021 and Might 2023. Supply: CryptoFees

The newest enhance in BTC transaction charges is primarily attributed to a surge in Bitcoin exercise involving BRC-20 transactions. In keeping with knowledge from Galaxy Analysis, 50% of all Bitcoin transactions on Might 2 had been related to BRC-20 transactions.

Modeled after Ethereum’s ERC-20 token normal, BRC-20 is an experimental token normal permitting customers to subject and switch fungible tokens on the Bitcoin blockchain. The usual was launched in March 2023 by a pseudonymous on-chain analyst often known as Domo.

The BRC-20 token normal has shortly turn out to be a serious pattern within the cryptocurrency trade, 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 Might 5.

PEPE 30-day worth chart. Supply: CoinGecko

The Bitcoin blockchain isn’t the one blockchain affected by the continued memecoin hype. Gasoline charges on the Ethereum blockchain have additionally been skyrocketing to new multi-month highs lately.

On Might 2, ETH transaction charges hit an combination quantity of greater than $19 million, a degree not seen since Might 2022, based on Crypto Charges. The Ethereum blockchain stays the most costly community when it comes to transaction charges on the time of writing.

Associated: Bitcoin miners have earned $50B from BTC block rewards, charges since 2010

Regardless of the most recent spike in Bitcoin transaction charges, the present BTC transaction value remains to be removed from all-time excessive ranges. The very best Bitcoin transaction charges had been recorded in April 2021, when the typical BTC transaction value virtually reached $70 amid a serious decline within the Bitcoin community hash fee. The earlier highest level in BTC transaction charges was in 2017, with transaction prices surging above $60.

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