Bitcoin recently witness a surge in transaction fees as a result of the popularity and demand of Ordinals, a new type of Bitcoin Non-Fungible Tokens (NFTs). According to WhaleWire, the average fee have increased by 799.8% from a year prior and 117.3% within the last 24 hours, reaching around $19.21 on average. In certain occasions, some exchanges have reported fees to go as high as $60.

This massive growth in Bitcoin fees is due to growing demand and relative scarcity of the transaction space in a single block, confirming the limited supply of Bitcoin. As more users are competing against each other to fasten the process of transaction by miners, resulting fees inevitably climb.

Though such fees can be very frustrating for some users, it is essential to remember that these fees are determined by the market itself, thus making them an important incentive for miners to prioritise Bitcoin transactions. The growth of user base and evolvement of the main digital currency provides plenty of ways for the network to accommodate the growing transactions and fees.

However, it is highly encouraged for investors to carry out their own research and analysis before investing in the cryptocurrency, to ensure that they have a full understanding of the market and the nature of the investible asset.



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