Bitcoin has experienced a notable surge in price over the last two days, reaching above $68,000. However, there have been other significant developments within the cryptocurrency sphere this week.
Analysis indicates that transaction fees on the Bitcoin network have skyrocketed by more than 200%. Interestingly, this increase in fees is not solely due to Bitcoin transactions but is also linked to a notable rise in memecoin transactions, particularly those involving Runes.
Surge in Bitcoin Transaction Fees
Data compiled by IntoTheBlock reveals a substantial spike in Bitcoin transaction fees this week, marking a remarkable 206% surge, bringing the total fees generated to $15.5 million. This fee escalation coincided with Bitcoin’s price surge to the $68,000 range after a prolonged period below this threshold.
While the upsurge in Bitcoin transactions has played a part in the fee increase, the surge in activity surrounding Runes within the Bitcoin network has been instrumental in driving up transaction costs.
Impact of Runes Transactions on Bitcoin Fees
An examination of Runes transactions on Dune Analytics suggests a significant uptick in activity over the past few days, with Runes accounting for over 45,000 transactions on the network as of 18 October.
Runes emerged as the second-most traded asset on the network after Bitcoin. On certain days over the past week, Runes transactions constituted more than 10% of all network transactions, alongside the consistent domination of Bitcoin transactions.
In the most recent trading session, Runes contributed to over 9% of all Bitcoin network transactions.
Besides transaction volume, Runes transactions have notably influenced the fees generated on the network. At the conclusion of the latest trading session, Runes transactions accounted for over 3% of the total Bitcoin transaction fees.
Throughout the week, Runes transaction fees surged to as high as 7%, surpassing 12% during the preceding week.
Resurgence of Miner Fees Following a Prolonged Lull
The escalation in Bitcoin fees has proved beneficial for miners. Data from CryptoQuant indicates that miner fees reached their highest daily level since August, peaking above $4 million on 17 October.
Although miner fees have subsequently decreased to approximately $1.7 million, they still rank among the highest recorded in the past two months.
Analysis of miner revenue by Glassnode underscored the role of Bitcoin and Runes transactions in the fee surge. Miner revenue from fees witnessed an increment of more than 11%, marking the first significant spike in miner fees since August.
Currently, miner fees constitute around 5% of the total revenue generated.