- Bitcoin’s average transaction fee has now surpassed Ethereum’s, reversing their relative positions for most of 2022. In the past week, Bitcoin’s fee rose 48% while Ethereum’s was lower.
- The widening gap is attributed to a revival in trading of Bitcoin Ordinals, a type of NFT minted on the Bitcoin network.
- Startups dealing in Bitcoin Ordinals like Taproot Wizards have seen significant venture capital interest, which appears to be driving up Bitcoin transaction fees.
The Fee Gap Widens
In the last week alone, Bitcoin‘s average transaction fee increased 48.4% from $8.59 on Nov. 12 to $12.75 on Nov. 19. Meanwhile, Ethereum‘s average fee was $7.55 on Nov. 19. The gap between the two is now much wider than when they briefly flipped in early October.
Ordinals Drive Bitcoin Fees Up
Bitcoin Ordinals are a type of NFT minted on the Bitcoin network. September saw a peak in Ordinals trading, followed by a slump in October. The recent revival in demand for Ordinals seems to have pushed up Bitcoin transaction fees. Startups specializing in Bitcoin Ordinals have attracted venture capital interest, like Taproot Wizards‘ $75 million seed raise on Nov. 16.