Memecoin hype drives Bitcoin transaction charges to multi-year highs

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Bitcoin transaction charges noticed a pointy surge in early Might, reaching their highest level over the previous two years, in keeping with information from CryptoFees.

On Might 3, the overall quantity of charges paid on the Bitcoin blockchain reached an quantity of $3.5 million, leaping about 400% from late April. The common Bitcoin transaction price reached as a lot as $7.2, in keeping with YCharts.

The continued 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 most recent enhance in BTC transaction charges is essentially attributed to a surge in Bitcoin exercise involving BRC-20 transactions. In line with information from Galaxy Analysis, 50% of all Bitcoin transactions on Might 2 had been associated to BRC-20 transactions.

Modeled after Ethereum’s ERC-20 token commonplace, BRC-20 is an experimental token commonplace permitting customers to problem 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 commonplace has rapidly develop into a significant pattern within the cryptocurrency business, particularly amid the sharp development 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 Coin (PEPE) 30-day worth chart. Supply: CoinGecko

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

On Might 2, ETH transaction charges hit an mixture quantity of greater than $19 million, a degree not seen since Might 2022, in keeping with CryptoFees. The Ethereum blockchain stays the most costly community by way of transaction charges on the time of writing.

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

Regardless of the newest spike in Bitcoin transaction charges, the present BTC transaction value remains to be removed from all-time excessive ranges. The highest Bitcoin transaction charges ever seen had been recorded in April 2021, when the common BTC transaction value nearly reached $70 amid a significant decline within the Bitcoin community hash price. The earlier highest level in BTC transaction charges was in 2017, with transaction prices surging above $60.

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