The Bitcoin (BTC) network has recently been facing challenges due to soaring gas fees, largely attributed to the rise of Ordinal inscription. However, recent data from the crypto analytics platform Glassnode suggests that the impact of these new innovations may be gradually subsiding.
As of now, Bitcoin transaction fees originating from Inscription transactions remain elevated at 26%. Out of 111 total trading days, only 12 had a larger relative share, accounting for 10.8% of all trading days. Although the current fee dominance remains significantly lower than its previous peak (62% of all transaction fees), the influence of Inscriptions on the Bitcoin network remains notable.
The high gas fees have raised concerns about the effects on Bitcoin’s growth and appeal to investors, particularly smaller holders. Transactions become relatively slower, as well as more expensive, ultimately leading to reduced interest. This decline in interaction and investment could result in a slower growth rate for the cryptocurrency’s price.
This may be a contributing factor to Bitcoin’s recent loss of momentum. At the time of writing, the coin is trading at a price of $26,915.73, up by a marginal 0.35% over the past 24 hours. While the bullish momentum is slowly returning, as BTC previously traded in the red earlier in the day, the ongoing influence of Ordinals on Bitcoin’s gas fees remains a concern for its future growth.
However, it’s crucial to note that despite the high impact of Ordinals, Bitcoin could still benefit from some uptrends as positive news circulates in its ecosystem. As the crypto industry evolves and more innovations find their place in the market, it’s important to remain watchful for developments that could affect transaction fees and overall network performance.
In conclusion, the role of Ordinal inscriptions in the recent increase in Bitcoin gas fees cannot be undermined, and it may continue to cause concerns for cryptocurrency traders and investors. That being said, as the Glassnode data shows a decrease in the impact of Inscriptions, investors may see improvement as the crypto market adapts to these changes.
In the ever-evolving world of cryptocurrencies, being informed and up-to-date with market trends and developments remains an essential factor in making sound investment decisions. Keep in mind that this article represents the personal opinion of the author, but is based on market conditions at the time of writing. Investors should always conduct their thorough research before investing in cryptocurrencies to minimize any potential financial loss.
Source: Coingape
