New Data Shows Miners are not Selling Bitcoin Despite Record Transaction Fees
The Bitcoin community is currently discussing the impact and implications of the BRC-token standard. The new addition to the blockchain was modeled after the ERC-20 token standard and it was designed to create fungible tokens using the Ordinals protocol.
However, this token standard does not depend on smart contracts like ERC-20 but requires a native wallet for minting and trading the new tokens. The standard gained considerable popularity recently with the introduction of a new meme coin named PEPE.
Due to the rising trading volume of PEPE tokens, the transaction fees on the Bitcoin network are inflated. It means that Bitcoin miners have been in profits but the on-chain data indicate that the group is not selling their Bitcoin reserves.
The rising transaction fees on the Bitcoin network are a direct result of high-intensity traffic at the Ordinals protocol. The main purpose of this protocol is to enable data inscription for every transaction on the blockchain.
Rafael Schultze-Kraft has shared some new data projections that reveal that the total transaction count on Bitcoin has increased to $17.7 million. When compared with the previous bull runs this amount is considerably high on the blockchain network.
He has also attributed the fee inflation to the increasing traction of the Ordinals protocol. The last highest recorded transaction fee amount on the Bitcoin network was noticed in 2017 during Bull Run.
Crypto Mining is Still a Highly Profitable Business
Meanwhile, Bitcoin miners have remained in profit considering that one of the two sources of revenue block rewards and transaction fees has surged. Nevertheless, there is concern among investors about miners opting to sell their Bitcoin reserves to realize profits.
However, the overall volume of exchange sales from miners has remained low. The projection is confirmed by Mitchell from Blockware Solutions.
The possibility of Bitcoin miners rushing to exchanges for realizing profits by mass selling has been dismissed by various data analysts.
It is good news for Bitcoin investors and the crypto market at large signaling that miners intend to keep the transaction revenues they have collected. During the last 7 days, Bitcoin prices decreased by 4%. At press time, the flagship crypto is trading at $27,600 per unit.
For context, it is important to note that the BRC-20 token was created by an anonymous entity named Domo. This standard was used to enable the transfer, minting, and trading of fungible tokens on the Bitcoin blockchain.
Since the introduction of this standard, the market cap of BRC-20 tokens minted on the Bitcoin blockchain has reached a cumulative $120 million showing a 600% rise during the past week.
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