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The Bitcoin (BTC) network faced a very tough time over the past couple of weeks as gas fees soared to new highs in what soon became a source of concern. The high gas fee recorded on the network was attributed to the emergence and growth of Ordinals inscription which soon became a new rave in the industry.
While the impact of Inscriptions are still notably high, data from crypto analytics platform Glassnode revealed that the impact of these new innovations is reducing gradually. The data showed that the percentage of Bitcoin Transaction Fees originating from Inscription transactions remains elevated at 26%.
The data provider highlighted that there are only 12 out of a total of 111 trading days that recorded a larger relative share. This accounts for 10.8% of all the trading days. Glassnode also points to the fact that the current fee dominance remains significantly lower than its peak, where Inscriptions were responsible for a staggering 62% of all the transaction fees on the network.
The percentage of #Bitcoin Transaction Fees originating from Inscription TXs remains elevated at 26%, with only 12 / 111 (10.8%) trading days recording a larger relative share.
However, the current fee dominance remains significantly lower than its peak, where Inscriptions were… pic.twitter.com/aLUKpHFEnP
— glassnode (@glassnode) May 20, 2023
Bitcoin Ordinal inscription is going nowhere anytime soon and their impact may remain a major source of concern as they may continually help retain higher gas fees.
Correlation of Bitcoin Gas Fee with Price
Whether it is for the Bitcoin protocol or any other Layer-1 network, the consideration of gas fee remains one that traders are often watchful for. With higher gas fees, transactions also become relatively slower and become largely enticing to investors, particularly small scaled holders.
This lack of interest may stir a relatively lower interaction or buy with Bitcoin, causing a slower growth rate in the price of the cryptocurrency.
This may explain why Bitcoin has been losing steam all week long. The coin is trading at a price of $26,915.73, up by a marginal 0.35% over the past 24 hours. The bullish momentum is just creeping in, as BTC was trading in the red in the early hours of the day.
For Bitcoin, the influence of Ordinals may be high, however, the coin is also bound to see some uptrends by virtue of the positive news circulating within its ecosystem.
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