The total fees paid for Ordinal Inscriptions topped 272 BTC, around $7.6 million on Tuesday, according to a Dune Analytics report. On Monday alone, over 372,000 Inscriptions were created on the Bitcoin network—contributing to a record number of Bitcoin transactions—with daily network fees hitting 23 BTC, or around $656,000.

Introduced in March, BRC-20—or Bitcoin Request for Comment number 20—allowed the creation of fungible tokens using the Ordinals protocol launching a new wave of interest in minting NFTs on the Bitcoin blockchain. However, while JPEGs are flooding the network, most Inscriptions are still text-based.

Currently, the memory usage on the Bitcoin network is over 650 MB, double the initial 300 MB capacity, indicating a higher demand for computer memory due to the increased transactions and fuller blocks, according to data from Mempool. This increase may make running a node more challenging, but Ordinals proponents say it secures and strengthens the network.

High fees benefit the Bitcoin blockchain by incentivizing miners, prioritizing valuable transactions, and enhancing network security. However, while loading up the Bitcoin blockchain with JPEG and sending fees skyrocketing may be good for miners and the network’s security, it puts a higher price tag on transactions on the network.

“I think this is the best thing that could have happened to Bitcoin,” Owens said, pointing out that the launch and development of Ordinals did not require changing the Bitcoin base protocol. “We’ve unlocked new use cases to bring in liquidity, new users, and lots of developers making Bitcoin more valuable through better user experience and more use cases is what we need to reach mass adoption.”

The launch of BRC-20 has led to a surge in Bitcoin transaction fees, as more users are minting NFTs on the Bitcoin blockchain, leading to higher demand for computer memory and memory usage on the Bitcoin network. This increase in fees is beneficial for miners and the security of the network, but puts a higher price tag on transactions. #Bitcoin #Ordinals #BRC20 #NFTs

You can read more about this topic here: Decrypt: Bitcoin Transaction Volume Hits All-Time High With 3 Million Ordinals Inscriptions

The post How Bitcoin Transaction Volume Reached a New Record High of 3 Million Daily Inscriptions first appeared on Byte Syze Crypto.