The Bitcoin network is facing an overwhelming number of unconfirmed transactions, as the mempool Skyrocketed from 134,000 to 390,000 in less than two weeks. This surge in unconfirmed transactions has caused a corresponding escalation in transaction fees, with the cost jumping from a daily average of $1.99 (April 26) to a current rate of $8.82 (May 7). The corresponding backlog would require a lengthy 179 blocks to be mined, amid an average block time of 10 minutes.

Analysts have associated this dramatic increase of unconfirmed transactions with the surge of Ordinal inscriptions and BRC20 tokens being launched on the Bitcoin blockchain. These digital assets have been possessing the network, significantly contributing to the currently experienced congestion. Bitcoin miners are struggling to keep up with this demand, with each block taking up to 10 minutes and 55 seconds to be completed.

As a response to this overpopulation of the Bitcoin network, the largest crypto exchange in the world, as measured by trade volume, has temporarily halted BTC withdrawals. This decision has been made in order to alleviate any further congestion and to protect funds.

However, even the Lightning Network has been ineffective so far to combat this issue. As opening and closing a channel is still expensive, alternative non-custodial solutions are few and far between.

It is crystal clear that demand for Bitcoin is outstripping supply and miners are struggling to keep up, albeit extra measures have been employed to soften the impact of a congested network. Despite the current status quo, analysts are optimistic that things will stabilize in the near future.



Other News from Today