Recently, Bitcoin has experienced a remarkable surge in mining difficulty, shattering previous records, according to statistics by BTC.com. This monumental event took place at block height 790,272, triggering a significant 3.22% increase in mining difficulty, reaching an astonishing 49.55 trillion.
Adding to the fervor, the current average hashrate now stands at an impressive 354.55 EH/s. The extraordinary rise in the demand for Ordinals BRC-20 has sparked a surge in mining activities, leading to a surge in the deployment and subsequent amplification of hashrate among various mining machines. This surge is set to redefine the landscape of cryptocurrency mining.
However, these statistics highlight the continuous growth and resilience of Bitcoin in the face of challenges. With each passing milestone, Bitcoin solidifies its position as the leading cryptocurrency, captivating the attention of enthusiasts and investors worldwide.
BRC-20 Token Standard Triggers Skyrocketing Bitcoin Transaction Fees
Previously, on May 10th, it was reported by Hashrate Index that the BRC-20 token standard, a new inscription token standard, has caused Bitcoin transaction fees to skyrocket, reaching their highest levels since 2017.
The market for inscriptions witnessed intense bidding wars over the weekend, driving transaction fees to unprecedented heights. Some block rewards even exceeded the previous halving epoch’s block subsidy of 12.5 BTC.
This fee frenzy resulted in a massive payday for Bitcoin miners, with transaction fees comprising the second-largest share of block rewards ever recorded.
Despite the exorbitant fees, the BRC-20 boom did not lead to all-time high block sizes. However, the profitability for miners was undeniable. The average fee-to-block-subsidy ratio soared to 33.09% over the past week, compared to just 6.37% the previous week.
Miners reaped a staggering 2749.95 BTC ($63,212,552) in transaction fees in May alone, surpassing the total from the year’s first four months. This transaction fee mania, coupled with Bitcoin’s price recovery, has revitalized mining revenues, bringing them back to levels not seen since May and early June of the previous year.
Although profitability has not fully reached the highs of May 2022, the recent fee and price actions have significantly improved the mining landscape. With the BRC-20 tokens driving these gains, Bitcoin’s transaction fee boom continues to fuel the industry’s growth.
Related Reading | Bitcoin’s Utility Takes A Hit: Daily Unique Addresses Drop Below 800k In May