U.Today - According to by Rafael Schultze-Kraft, CTO at blockchain data analytics firm Glassnode, the recent surge in Bitcoin on-chain transactions can be attributed to the significant increase in text inscriptions related to the new BRC20 token standard.
The data shows that these text inscriptions have surpassed all other types of transactions on the Bitcoin network, even momentarily exceeding the total number of all other transactions combined.
Schultze-Kraft provided a breakdown of the various types of Ordinal inscriptions within the , revealing that text inscriptions make up the largest portion, totaling 2.8 million, followed by images at 650,000, video at 1,800, audio at 347, and other types at 19,000.
These text inscriptions are primarily used for deploying contracts and transferring tokens, which has led to a significant increase in on-chain transactions.
As a result, the Bitcoin fee market has also been impacted, with transaction fees paid to miners reaching $3.5 million yesterday, marking the highest value in two years.
Schultze-Kraft noted that up to a third of all Bitcoin fees paid to miners in recent days can be attributed to BRC20 transactions.
The increase in on-chain transactions suggests that users are finding new use cases for the network, and the Bitcoin fee market's growth may incentivize miners to support these additional transactions.