What's happening with Bitcoin transaction fees?

[Woodie]

Had to check mempool, and from the image shown in the OP, the fees as am writing have actually jumped up another plus 20sat/vB which is currently averaging between 77 - 90 sat/vB and looking at number of transactions in the block these are actually getting filled up unlike same time last week we're we saw blocks carrying 1000 transactions to 2500 transactions but now they are all carrying 3500+ tx...which to me suggests that demand to get transactions confirmed in the next block is the primary reason!!!

With these high transactions, this makes making micro payments unattractive and alts could be benefiting from this for now..

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[stompix]

Definitely not related since Bitcoin high transaction is already there few days ago when the pump to 35k started.

Guess what, so where ordinals!
https://dune.com/queries/2433706/3998316
https://mempool.space/graphs/mempool#1m

The first day that 1sat/b tx stopped getting confirmed was the exact day the ordinals started being minted again!
Besides, the first major pump in Bitcoin price happened in the 14-16 interval, the mempool actually went down during those days!

This is really some crazy shit, frankly. It's becoming obvious this is going to be the major bane of Bitcoin, and not even the government we keep poking fingers at for its refusal to fall in line with the mass adoption thing.

So let me get this right, guys printing jpegs and paying for those around 2 million a day in fees are a treat for Bitcoin, but not the government, which can spend for example 4 million a day on a single aircraft carrier, and the US has 11 of them! Imagine they would truly want to attack Bitcoin as they see it as a threat and redirect just that money to increase the fees to attack Bitcoin, you would be paying $60 per tx by now!  

[SamReomo]

Those ordinals are the worst attack to the Bitcoin network but still those useless Jpeg files are getting appreciation from the ones who really don't care about Bitcoin's network. The ordinals caused huge market back then when the BRC-20 protocol was introduced and now once again those useless tokens are causing network congestion.

It's insane to see 73 sat/vB for low priority transactions and that shows how horrible the ordinals are for us Bitcoiners. I think the developers should find a way to stop those ordinals as they are huge risk for Bitcoin network. Those useless tokens are creating many TX's and which's causing network congestion.

The worst thing is that those useless tokens are now getting listed in centralized exchanges and that means that more and more network congestion for Bitcoin transactions. I think it's the start of those useless ordinals and who knows in future how severe network congestions they may create.

[Faisal2202]

I was checking mempool and saw the transaction  fee sky rocketing. I am not sure what happened suddenly as these fees are way beyond anyone's imagination. Later on, I did found out that Binance has listed Ordinals (ORDI). I want to ask the community whether the severe high transaction fee occured because of the listing?
I went ahead and check the price of $ORDI on Binance and found that it is trading at a price which is way beyond it should be. I am sharing the screenshot below.

I don't think this listing of ORDI has anything to do with congestion and, to be frank, we have seen more so I would not that the fee is beyond anyone's imagination I think you were not active in the market when the price for the fee were touching $32. Yeah if you want to know more you might want to visit the following thread:

• Why BTC Transactions Fees are Skyrocketing?

And to some extent, it does have some impact on the congestion because it is a BRC-20 token so based on the BTC blockchain. This really upsets me like how money makers who don't give a shit about BTC are misusing it to make what like 10x or 50x maximum (just assume). They still are doing the wrong thing IMHO.

[Zaguru12]

Take note that ViaBTC is a mining pool and if you use their free accelerator and meet all the requirements, you still have to wait until ViaBTC successfully mines a block, and it can take sometime. ViaBTC also accelerates only 100 tx's per hour, so it is likely that you will fall under a queue.

I had a look into the blocks confirmed as at the time of this post it was at 815740 and the last block to be mined by viabtc pool is block 815721 which around 20 blocks down, imagine having to wait this long and if you don’t get into the next block mined by them you wait way longer again, definitely a long time before wait.

Although according to their FAQ you could get your transaction mined by other pools because they have a cooperation with other multiple pools but I doubt it will be for free services, it will certainly be for those paid services because they could be paying commission to those pools too. In order to pay miners it will be logical to just use the fee rate estimate by mempool.space as you said or wait till they get less congested a bit if one is not in a hurry to receive the transaction

[BitcoinsGreat]

I was checking mempool and saw the transaction  fee sky rocketing. I am not sure what happened suddenly as these fees are way beyond anyone's imagination. Later on, I did found out that Binance has listed Ordinals (ORDI). I want to ask the community whether the severe high transaction fee occured because of the listing?

It is for sure because of the Ordinals and we see this because of the listing at the binance. I remember that a few months ago the Ordinals were in the hype and at that time too, the mempool was congested resulting in the high tx price.

Anyways this is a party time for the miners as their revenues are increased by many times these days.

I had a look into the blocks confirmed as at the time of this post it was at 815740 and the last block to be mined by viabtc pool is block 815721 which around 20 blocks down, imagine having to wait this long and if you don’t get into the next block mined by them you wait way longer again, definitely a long time before wait.

Well, if the mempool is congested like it is now, will it take longer to mine the block too ?
Yes, I know that the transaction fee is increased but due to this, the block mining time is also increasing ?

[Captain Corporate]

Honestly, this whole ordinals thing didn't really bring in any benefit that could balance the negative that it brought in. I have to say that it has profited only a few people while also making all of bitcoin to be something that is way too expensive to use. That is what bitcoin world should go towards, being "used", and if the transaction takes longer than thirty minutes and costs this much money, how could we say that it is definitely worth to be used, nobody would use it. This is why its a lot better to make sure that we could end up with something that is much better, and could be done in a way that would be cheaper and faster. Which means we need to get rid of ordinals type of things.

[Quidat]

Checking out on https://mempool.space/

Low Priority
91 sat/vB
$4.51

Medium Priority
102 sat/vB
$5.06

High Priority
107 sat/vB
$5.31

This is really a pain in the ass.This isnt the first time but anytime that the network condition is on traffic or tons of pending transactions
then this do usually happens. Its been a while that we havent seen this kind of traffic. Checking out the price then its playing on 35k.
Havent see any news or events that triggers out this situation but well there might be some non obvious reason
with this sudden spike on transaction.

[tjtonmoy]

This is not something new and it is also not an issue. Those who can invest could easily use that transaction fee. We have faced similar situation with even higher fees few months ago, maybe. It was more than 350 sat/vB. I may have forgotten but it was higher than this. There was some kind of news as people were making more transaction than usual making the blockchain more crowded.

This is not an issue because you can set the fee manually. You can even put as less as 1 sat/vB. It will take time for the blockchain to cool down but when it does, you transaction will go through. It's all about having patience and if it's not important then just ignore it. But if you are desperate, you have no other choice but to use the dedicated / default fee

[hosseinimr93]

Well, if the mempool is congested like it is now, will it take longer to mine the block too ?

No. The average time it takes to mine blocks depends on the difficulty and the the total hash power of miners. The number of transactions in the mempool has nothing to do with the block time.
It may worth mentioning that, the average block time is always approximately 10 minutes on average and the difficulty is adjusted every 2016 blocks to keep the average block time close to 10 minutes.

[BitMaxz]

Now the fees keep increasing it is more than 100sat/vB for high priority and I believe it would increase more it's not as good as yesterday.
The only reason that I could see is due to the ordinals we saw this issue on ETH that keeps gas fees rising, and now Bitcoin is having trouble with Ordinals which keeps the fees high same as what happens to ETH when PlayToEarn rises.

The mempool chart for incoming transactions shows a big drop in incoming transactions it seems fees suddenly dropped from 100sat/vB to 70sat/vB.

I can imagine if more people will use Ordinals in the future I hope that they develop their own blockchain or have separate chains to get rid of these fees.

[hugeblack]

It is the enthusiasm of the beginnings, but soon people discover that writing on the Bitcoin blockchain is expensive and not as valuable as they see, and thus this type of spam will decrease. Unfortunately, we do not have much to do because these transactions are compatible with the protocol, but I do not expect them to have a future and impact as happens to some NFT markets, so What is happening is temporary and a tax OF decentralization.

[suzanne5223]

I was checking mempool and saw the transaction  fee sky rocketing. I am not sure what happened suddenly as these fees are way beyond anyone's imagination. Later on, I did found out that Binance has listed Ordinals (ORDI). I want to ask the community whether the severe high transaction fee occured because of the listing?

Sadly, most Binance listing somehow influences the market due to the exchange level of liquidity and the chance of quick profit the exchange listing always provide to the cryptocurrency investment.
Another sad thing is that 90% of all crypto investments only care about profit and have no sentiment for the market condition.

Anyone here who can give a solution to this issue? I feel they would continue to make the transaction fee in those Satoshi figures . This situation would not help small investors and traders as they would avoid these kinds of transaction fees.

The solution I can think of is the implementation of Schnorr signatures which will also improve security and privacy. Another is the use of lightning network.

Yeah it seems there many stupid people want to get tricked by Ordinal again, that because Binance is now start accepting this shitcoin.

I think they are more than stupid because they are only after the profit aspect of the market and never care about the result with the huge transaction fee the ordinal is creating in the BTC network.

[Z-tight]

Although according to their FAQ you could get your transaction mined by other pools because they have a cooperation with other multiple pools but I doubt it will be for free services, it will certainly be for those paid services because they could be paying commission to those pools too. In order to pay miners it will be logical to just use the fee rate estimate by mempool.space as you said or wait till they get less congested a bit if one is not in a hurry to receive the transaction

Yeah, you are right, if you use ViaBTC paid service, your tx can be included in a block mined by one of their cooperative pools.

After receiving your acceleration fee, ViaBTC will notify all cooperative mining pools.

But rather than using the paid service for tx acceleration, it is better to have checked the mempool before broadcasting in order to pay an appropriate fee, or you bumb the tx with rbf if it is stucked.

Well, if the mempool is congested like it is now, will it take longer to mine the block too ?
Yes, I know that the transaction fee is increased but due to this, the block mining time is also increasing ?

BTC blocks are mined ~ 10 minutes on average. The network is congested because fee rate is high and people who attached low tx fees will have to wait as their tx will be unconfirmed, but if you use the fee rate for high priority, your tx will likely be mined in the next block.

[serjent05]

Anyone here who can give a solution to this issue?

Lightning Network should be the solution but the issue with it is not resolved yet.  I think if you keep on using Bitcoin, no one has a solution for it unless the developer blocks the ordinals and keep it out of Bitcoin networ.

I feel they would continue to make the transaction fee in those Satoshi figures . This situation would not help small investors and traders as they would avoid these kinds of transaction fees.

Yeah, the transaction is way too expensive and it is devastating for small-time businesses and it is not good for the Bitcoin economy since these small businesses might be forced to stop their support by disabling Bitcoin payment option.


Binance accepting Ordinals simply shows they do not care about Bitcoin but their own business.

BTC blocks are mined ~ 10 minutes on average. The network is congested because fee rate is high and people who attached low tx fees will have to wait as their tx will be unconfirmed, but if you use the fee rate for high priority, your tx will likely be mined in the next block.

I did a transaction recently and the average tx fee suggested by Electrum made me wait 10 hours to confirm.  This is not good if Bitcoin wants to compete with fiat payment processors.

[Darker45]

This Ordinals thing has not completely died yet. There are still little news or developments every now and then which somehow resuscitate it. ORDI's listing on Binance, for example, is one of them. But I don't think Ordinals is still as popular as it was before. It had a quick golden age and it is now facing its sunset.

I've just checked the mempool and there are still 138,028 unconfirmed transactions and high priority fee is a staggering 100 Sat/vB. Even so, I don't see this as permanent. This will all subside sooner rather than later. The hype of Ordinals will die.

[Cryptoababe]

The Binance listing made $ORDI price go up because it brought more awareness It's also the cause of the congestion on Bitcoin network because the network isn't made for that. Although, I bought some $ORDI. but that was on Bitget before Binance Listing and I sold some after the pump because I just wanna buy more Bitcoin.
So, As people keep minting some NFTs or Brc20 on Ordinals, the Bitcoin transaction fees go higher because its built on Bitcoin network.

[DdmrDdmr]

In this Tweet, @rodamor made it clear that ORDI does not have a direct relation to the Ordinals project (*). The Tweet even led Binance to recently rectify some of the token’s info on its page regarding $ORDI.

As far as I can make out, each $ORDI is backed by one Satoshi, though I see this backing more as a conceptual thing than anything, since the token flows in value at will.

From what I’ve read, its utility seems to reside in:

ORDI Coin is the service token of the Ordinals protocol and is primarily used to pay transaction fees in the protocol. ORDI coin can also be used to participate in the governance of the protocol, making it a governance token.

Edit: Let's leave the above user cases in quarantine for now, until some evidence of this being so or potentially so being comes to light.

(*)There is therefore some relation to Ordinals, just not strictly at a core level, at least as far as I can tell. Bearing in mind the above quote, its listing should have no direct relation to Bitcoin network TX Fees, but rather these should relate to the number of Ordinals inscriptions themselves (not the token, though the buzz may cause for a higher demand of both, and even more so when many may be confusing the two).

See : https://www.publish0x.com/cointurk-news/ordinals-adding-extra-data-to-bitcoin-and-creating-nfts-with-xnkxqze


Going over My Ordinals Dashboard (I’ve refreshed some parts now to get a clearer picture), Ordinal inscription numbers boosted from the 24/10/2023 onwards, reclaiming daily bitcoin processed transactions related to Ordinals to be in a range around 40%-60% as of late (last 4 out of 5 days). This is the result not only of the daily inscriptions, but of the cumulative backlog that started to build from the 24/10/2023 onwards.

Consequently, daily Ordinal average fees have steepened over recent days, moving from the placid average of 6,6 sats/vByte on the 02/11/2023, through to 42,4 sats/vByte on the 04/11/2023, to yesterday’s 44,5 sats/vByte on average. Subsequently, all bitcoin TXs fees have paired on the rise, bearing in mind the drive in number of TXs that Ordinals represent as of late, as seen in the prior paragraph.

[posi]

ORDI is back and it is causing a lot of trouble for bitcoin transactions. Many people thought that this ORDI was dead, but according to what I saw in the past 2 days, it was not only revived but also very strong. Not only Binance list ORDI, another token called Sats is also being listed by major exchanges. This suggests that the transaction fee issue will not improve anytime soon as the BRC20 trend is still very strong.

To me, BRC20 is nothing more than a meme, they were created to create hype to attract new people to become liquidity for market makers. So I think they will not easily disappear but will continue to exist and develop.

[KiaKia]

Yeah it seems there many stupid people want to get tricked by Ordinal again, that because Binance is now start accepting this shitcoin.

This situation would not help small investors and traders as they would avoid these kinds of transaction fees.

It will not affect traders, they're leave their coins in centralized exchange and even they want to withdraw their coins, CEX is charge a fixed fee regardless the situation on mempool.

Isn't that the crazy part of crypto? I have been into crypto for few years now and the one thing that's learned and that haven't change yet is that the most stupid utilities in crypto space tend to work for the next bull market and millionaires are always printed by them.

I have said this before that Ordinals have the potential to get people rich in 2025, it's something new and it's even on BTC, of cos it doesn't make it the best thing but that's the way things are, it's how we all called Shiba inu a shit god forsaken project and meme coins printed many millionaires still.

Now this Ordi is trading for $13-$14, yes it's probably another meme coin but ask yourself, why are you in crypto space even if Bitcoin is your most trusted project ever? You can possibly use Ordinals to get more Bitcoin on the long run, so be prepared for an insane spending on transaction fee in 2024-2025 and miners will be there to rip the most profits out of everyone.

Unfortunately this is unavoidable.