- BRC-20 tokens contributed to the drastic change in the market.
- The newest transaction fee amount may seem little compared to the $2.4 billion.
Coin Metrics reports that this quarter, because of the rise in the value of BRC-20 tokens and Ordinals, Bitcoin miners have reaped an unexpected profit of several million dollars in transaction fees.
Crypto analytics company claimed a previously “tepid fee market” for Bitcoin miners has been unexpectedly disrupted with its latest “State of the Network” report indicating miners earned $184 million from transaction fees in April, May, and June.
Although the newest transaction fee amount may seem little compared to the $2.4 billion in Bitcoin mining income as a whole, Coin Metrics reports that it really represents more than the sum of the five previous quarters. It said that BRC-20 tokens contributed to “an exceptional change” in the market.
Ordinals Bring Transformation
Ordinals, introduced this year, allow users to build NFT-like assets on Bitcoin by attaching information to a satoshi, the lowest possible fraction of a Bitcoin (one hundred millionth of a Bitcoin).
Some in the Bitcoin community have reacted negatively to the introduction of Ordinals, but prominent Bitcoin supporters like MicroStrategy co-founder and Executive Chairman Michael Saylor have pointed out the protocol’s potential to help miners remain profitable over the long term.
The BRC-20 token standard was created in March, taking cues from Ethereum’s ERC-20 token standard. According to statistics, the market capitalization of BRC-20 tokens has increased to above $240 million.
Users mint BRC-20 tokens by submitting a transaction with a fee to have their move to mint tokens processed on the Bitcoin network and included in the next block of transactions, thereby staking a claim on newly issued tokens from a launched BRC-20 project.
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