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Bitcoin Transaction Fees Shoot Up Above $30; Lighting Network to Rescue?

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Bitcoin Transaction Fees Shoot Up Above $30, Lighting Network to Rescue?

  • Bitcoin transaction fees surge above $30.
  • BTC transaction fees jumped from $19.21 on May 7 to their current fees.
  • BRC-20 emergence has put extra pressure on the Bitcoin network.

Bitcoin has been going through its fair share of trouble over the past few days. Even though the Bitcoin network touted low transaction fees as compared to other blockchain networks, times have changed.

According to the latest details from YCharts, the average Bitcoin transaction fee has surged past $30. It currently stands at $30.91. Data shows that transaction fees have almost gone 15 times higher than they were at the beginning of May.

Bitcoin transaction fees stood at $2.952 on May 1 and touched $7.1 on the 2nd and 3rd. However, the fluctuating fees touched $19.21 on May 7, with the fees surging even higher now.

The average #Bitcoin transaction fee is now above $30. May as well send a wire transfer at this point. pic.twitter.com/YrXjO4EzPj

— Mati Greenspan (@MatiGreenspan) May 9, 2023

This has definitely turned the attention of exchanges, including Binance and Coinbase, to enabling the Lighting Network. Lighting Network is known for its cheap and quick transaction speed, which is already enabled by exchanges including Kraken, OKX, and Bitfinex, to name a few.

What caused the sudden surge in Bitcoin transaction fees?

Crypto transaction fees are subject to fluctuation due to various factors. Currently, one factor influencing the increase in Bitcoin’s transaction fees is the introduction of BRC-20.

BRC-20 is a token standard that was launched in March 2023 as an experimental initiative. Similar to ERC-20 tokens, BRC-20 tokens are fungible and allow users to trade fungible assets within the Ordinals protocol. The introduction of the BRC-20 standard has also paved the way for the creation of several meme coins, including ORDI, PEPE, DOMO, and PUNK.

The surge in popularity of these meme coins, including PEPE, has put extra pressure on the network. However, analysts and bitcoin MAXIs believe the network and the fees will cool down.

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