“Blockchain Inscriptions Drive Record-High Transaction Fees: Bitcoin and Avalanche Network Most Impacted”

1 views 7:03 am 0 Comments December 19, 2023

Summary:

Inscriptions on various blockchains, including the Bitcoin network, resulted in a surge in transaction fees over the weekend. The explosion of Ethereum Virtual Machine (EVM) chain inscriptions led to a record-high of $8.3 million spent on fees on December 16th. The Avalanche network was the most heavily impacted, with nearly $5.6 million spent on fees that day alone.

Introduction:

Over the weekend, the need for block space was driven by an inscriptions frenzy, resulting in increased network transaction fees across multiple blockchains. The data from Dune Analytics shows that fees spent on inscriptions reached a record high of $8.3 million on December 16th. The Avalanche network was particularly affected, with almost $5.6 million spent on fees that day.

Main Points:

  • Avalanche network and Arbitrum One were the most impacted by the inscriptions frenzy.
  • EVM inscriptions accounted for a significant percentage of gas costs on the Avalanche network and zkSync Era.
  • BNB Chain experienced a surge in inscriptions, accounting for 73% of transactions in the last 24 hours.
  • Bitcoin network also witnessed an increase in inscriptions, leading to higher transaction costs and the need for more block space.
  • Bitcoin transaction costs have risen to as high as $37, making it challenging for users to utilize the network efficiently.

Conclusion:

The inscriptions frenzy caused a significant increase in transaction fees across various blockchains, including Bitcoin. This surge in fees has led to challenges for users and increased the need for layer-2 solutions. Despite the high fees, advocates argue that inscriptions boost adoption of innovative technologies and push for further advancements in the crypto space.