Rafael Schultze-Kraft, CTO of blockchain analytics company Glassnode, recently tweeted that the recent rise in Bitcoin on-chain transactions can be attributable to the sharp rise in text inscriptions pertaining to the new BRC20 token standard.
The data demonstrates that the volume of these text inscriptions on the Bitcoin network has overtaken all other kinds of transactions, briefly surpassing the sum of all other transactions.
2.8 million text inscriptions make up the majority of the various sorts of Ordinal inscriptions on the Bitcoin network, followed by 650,000 photos, 1,800 videos, 347 audio inscriptions, and 19,000 other types, according to a breakdown Schultze-Kraft supplied.
With the usage of these text inscriptions for contract deployment and token transfers, on-chain transactions have significantly increased.
As a result, the market for Bitcoin fees has also been influenced; yesterday, transaction fees paid to miners reached $3.5 million, which was the biggest amount in the previous two years.
Up to a third of all Bitcoin fees paid to miners in recent days, according to Schultze-Kraft, may be ascribed to BRC20 transactions.
The expansion of the Bitcoin fee market may encourage miners to facilitate these extra transactions, and the rise in on-chain transactions shows that users are discovering new applications for the network.
