Bitcoin Value Rises, BRC-20 Tokens Gain Popularity Amid Network Congestion
Increasing Activity in the Bitcoin Network: What Does This Mean for BTC Price?
Over the past week, there has been increased activity in the Bitcoin network, leading to a 61% rise in total fees. This increase was caused by the recent value growth of BTC and the rising acceptance of BRC-20 tokens and text-based inscriptions in the Bitcoin network.
The Impact of BRC-20 Hype on the Bitcoin Network
The increased activity is due to the double-digit rise in BTC value over the past week and the recent increase in acceptance of BRC-20 tokens and text-based inscriptions in the Bitcoin network. At the time of publication, BTC was trading at an 18-month high of $44,261. Over the past week, the coin’s value has increased by 14%. This is due to the growing demand for the leading coin, whose price has risen to new highs.
Increased Interest in BRC-20 Tokens
Over the past week, there has been a high interest in BRC-20 tokens in the BTC network. For example, the meme coin Ordi [ORDI] became the first BRC-20 token to surpass a market capitalization of $1 billion this week. Similarly, its price reached an all-time high of $63 during the same period.
Rising Fees and Network Congestion
The high activity around the BRC-20 tokens this week led to the Bitcoin network being overloaded with unconfirmed transactions, clogging the mempool. On December 6, data from mempool.space showed that the mempool, the temporary storage area for pending transactions, reached 1.54 GB, a value significantly above the capacity of 300 MB.
Future Outlook and Price Forecast
In the coin’s futures market, open interest continues to rise. At $19.7 billion, BTC’s open interest is currently at its highest level since April 2022. The increase in open interest means that more traders are entering the market and opening new positions.
Conclusion
The increasing activity in the Bitcoin network and the rise in BTC price indicate a positive trend. However, it remains to be seen how the situation will further develop and what impact this will have on the price of Bitcoin.
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Sources: IntoTheBlock, CoinMarketCap, BitInfoCharts, Coinglass, mempool.space
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