In a historic Bitcoin transaction on November 23, a whopping $3 million was paid in transaction fees. Data sourced from an on-chain platform showed that the transaction was part of a block mined by Bitcoin miner Antpool, which not only received the standard mining reward of 6.25 BTC but also an additional 85.2163 BTC in fees from all transactions within the block.
This remarkable transfer, imprinted in block 818087, now holds the record for the highest transaction fee ever paid in BTC’s 14-year history. Notably, the sender’s wallet was established just minutes before executing the transfer, and the recipient ultimately received only 55.7 BTC out of the originally intended 140 BTC.
Bitinfocharts reveals that the current average cost of conducting a transaction on the Bitcoin network is $10.51. However, the recent surge in BTC transaction fees is not an isolated incident, as similar errors have occurred in recent times. In September, crypto firm Paxos mistakenly paid a $500,000 fee for processing a transaction valued at only $2,000. Fortunately, Bitcoin miner F2Pool agreed to refund the excessive payment.
A closer look at the unusual transaction suggests an error on the part of the sender. In a broader context, the recent surge in BTC transaction fees can be linked to the revived enthusiasm surrounding Bitcoin Ordinals. Comparable to non-fungible tokens, ordinals are digital assets embedded in a satoshi, the smallest unit of BTC.
Bitcoin Ordinals Frenzy Back
The incorporation of Ordinals into the Bitcoin blockchain leads to heightened network activity, resulting in increased congestion and, consequently, elevated transaction costs. Users aiming to reduce fees while interacting with the primary cryptocurrency have alternatives, such as opting for lower fees before initiating a transaction. However, this decision comes with the downside of potentially prolonged waiting periods, as miners typically prioritize more lucrative transactions.
Choosing lower fees also introduces the risk of miners outright ignoring such transactions, rendering them unprocessed and obstructing their intended delivery. With Bitcoin Ordinals and associated activities continuing to contribute to heightened network congestion, users must carefully consider the financial implications and possible delays associated with their chosen transaction fees.