Bitcoin network fees doubles as BTC closes in on $70K

• Total network fees rose by over 100% in the past week.
• Ordinals transactions contributed over $3 million in fees.

Bitcoin [BTC] has experienced an upward trend in the past week, and an increase in transaction fees has mirrored this surge.

However, the rise in fees cannot be solely attributed to the price surge; rather, it is also influenced by a slight increase in Ordinals transactions observed during the week.

How has the overall fee trend performed in light of the recent price rise?

Bitcoin double fees

Data from IntoTheBlock showed that Bitcoin experienced a notable increase in transaction fees this week, doubling compared to the previous week.

One of the key factors contributing to this surge is the upward movement in the price of BTC, bringing it closer to the $70,000 range.

This price rise, in turn, led to a significant increase in transaction volume, reaching its highest levels in months. 

AMBCrypto’s analysis of the volume chart on Santiment showed it surpassing $100 billion on the 5th and 6th of March. The last time such a volume level was observed was in November 2022.

IntoTheBlock attributed the fee increase not only to the price surge but also to the recent rise in Ordinals transactions.

How Ordinals transactions and fees have fared recently

AMBCrypto’s look at Ordinals’ inscriptions over the past week revealed a significant increase.

Starting with about 48,000 daily inscriptions at the beginning of the week, the number of daily inscriptions had surged to over 93,000 by the 8th of March. 

Source: Dune Analytics

Examining the Ordinals fee paid during this period showed that the daily average fee stood at around eight BTC. This translated to Ordinals fees contributing about $3.8 million to the total network fees for the week.

Additionally, data from Dune Analytics showed that, to date, Ordinals has contributed over $434 million in fees.

How the overall Bitcoin fees have trended 

AMBCrypto’s analysis of Bitcoin’s fee trend for the week showed that it began with approximately 46 BTC in daily fees. Around the 5th of March, the daily fees surged to over 103 BTC.

However, towards the end of the week, the daily fee had decreased to around 40.7 BTC.

Despite the decline in fees as the week concluded, an analysis of the chart showed that there were more daily fees compared to the previous week.

Source: Glassnode

Bitcoin moves closer to $70,000

AMBCrypto’s analysis of Bitcoin’s daily timeframe chart showed that it was on the verge of breaking into the $70,000 price range.

How much are 1,10,100 BTCs worth today?

At the time of writing, BTC was trading at about $69,400, reflecting an over 1% increase. The bullish trend persisted, as evidenced by the Relative Strength Index (RSI) surpassing 75.

This also signaled that Bitcoin was still in the overbought zone. The potential breakthrough into the $70,000 price zone could trigger a new surge in volume, potentially leading to a further increase in fees.

Source: Trading View