HomeAnalysisBitcoin Inscriptions Surge to Manic Levels, Bringing Benefits to Miners

Bitcoin Inscriptions Surge to Manic Levels, Bringing Benefits to Miners

Published on

Data shows that Bitcoin Inscriptions have observed a resurgence recently, leading to a boost in the transaction fee of the miners.

Bitcoin Inscriptions Have Risen Back To 400,000 A Day

In a new post on X, analyst James V. Straten has talked about the latest trend in the BTC Inscriptions. The “Inscriptions” refer to directly inscribing data into the Bitcoin blockchain.

The Inscriptions can be made using any data, whether text, audio, image, or even video. This technology has found use in various applications on the network, including non-fungible tokens (NFTs) and BRC-20 tokens.

Whatever type of data the Inscriptions may use, they occupy the same place in the block as normal transactions, meaning that they influence all metrics related to the network.

Image and other types are naturally data-intensive, while text-based Inscriptions are lightweight and add little memory to the blockchain. In its early life, the tech saw a dominant usage from the image type, as NFTs were the hot thing then.

As new applications surfaced, the cheaper text transactions blew up. The chart below shows the total Bitcoin Inscription count and how the distribution among the different types has changed over the past year.

The value of the metric has been quite high in recent days | Source: @jimmyvs24 on X

The graph shows that the Bitcoin Inscriptions had been highly popular between May and September, but these transactions lost all steam in October.

Following the latest rally in the cryptocurrency’s price towards the $35,000 mark, the fad seems to have returned in the sector. Straten notes that the Inscriptions are being made at a rate of 400,000 per day again, similar to the peak seen in the mania earlier in the year.

As mentioned before, the Inscriptions are much like the normal financial transactions on the blockchain, so the spike in operations at such a high rate has been affecting the economics of the network.

In particular, the total transaction fees that miners receive have registered an uptick during phases of Inscription mania, as the chart below shows.

Bitcoin Miner Revenue From Fees

Looks like the value of the metric has seen an uplift recently | Source: @jimmyvs24 on X

Normally, the block rewards make up the main source of revenue for the miners, with the transaction fees being a secondary income stream that doesn’t make up for more than 2% to 4% of their total revenue.

During periods when the Inscriptions have been popular, though, the fees have provided a significant portion of the income of these chain validators. With the Inscription count shooting up again, it’s not a surprise that the miners are once again benefitting from the fees, adding up to a notable part of their revenue.

Block rewards will run dry in the future as there will be no more BTC left to mine. The miners will thus need to rely solely on the transaction fees to make their money. Applications like the Inscriptions perhaps show how the fees could sustain these chain validators.

BTC Price

At the time of writing, Bitcoin is trading at around $35,200, up 3% in the past week.

Bitcoin Price Chart

The asset hasn’t moved much recently | Source: BTCUSD on TradingView

Featured image from Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, Glassnode.com

Latest articles

Analyst Suggests Ethereum Price Could Surge to $3,100 with Bullish Momentum

Ethereum (ETH), the second-largest cryptocurrency, has seen a significant price increase over the past...

Cboe Digital Announces Plan to Introduce Margin Futures Trading for Bitcoin and Ethereum by 2024

On Nov. 13, Cboe Digital announced that it will soon launch trading and clearing...

Top Trader Predicts Significant Price Increases for Sushi and Apecoin – Check Out His Projections

A crypto strategist says more rallies are up ahead for prominent decentralized exchange (DEX)...

What is the difference between NVMe and M.2?

`` Over the last decade, solid-state drives (SSDs) have become the top choice for many...

More like this

Analyst Suggests Ethereum Price Could Surge to $3,100 with Bullish Momentum

Ethereum (ETH), the second-largest cryptocurrency, has seen a significant price increase over the past...

Cboe Digital Announces Plan to Introduce Margin Futures Trading for Bitcoin and Ethereum by 2024

On Nov. 13, Cboe Digital announced that it will soon launch trading and clearing...

Top Trader Predicts Significant Price Increases for Sushi and Apecoin – Check Out His Projections

A crypto strategist says more rallies are up ahead for prominent decentralized exchange (DEX)...
bitcoin
Bitcoin (BTC) $ 43,580.68 1.11%
ethereum
Ethereum (ETH) $ 2,364.49 5.58%
tether
Tether (USDT) $ 1.00 0.01%
bnb
BNB (BNB) $ 234.31 1.58%
xrp
XRP (XRP) $ 0.65146 3.23%
solana
Solana (SOL) $ 72.93 13.63%
usd-coin
USDC (USDC) $ 1.00 0.03%
staked-ether
Lido Staked Ether (STETH) $ 2,360.73 5.80%
cardano
Cardano (ADA) $ 0.515135 18.44%
dogecoin
Dogecoin (DOGE) $ 0.097478 3.35%