The Popularity of Memecoin Pushes Bitcoin Transaction Costs To Historic Highs

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The current cost of a Bitcoin transaction is still quite low despite the most recent increase in transaction fees. As per data from Crypto costs, Bitcoin transaction costs spiked in the first few days of May, surpassing their highest level in the previous two years due to memecoins.

The total fees collected on the BTC network as of May 3 increased by roughly 400% since late April to $3.5 million. According to YCharts, the typical Bitcoin transaction cost was as high as $8.2. Bitcoin BTC tokens are down $28,723 as a result of the ongoing exchanging craze for memecoin like PEPE, pushing up transaction prices to historical highs.

The recent spike in Bitcoin transaction costs is mostly related to an increase in BRC-20 transaction activity. Galaxy Research data shows that on 2nd May, BRC-20 trades accounted for 50% of all transactions using Bitcoin.

Historical Hike In Bitcoin Trade Amid Rising Memecoin Popularity Claims Connection With BRC-20 

BRC-20 is a prototype token standard that enables users to generate and transmit reusable coins on the blockchain of Bitcoin. It is modeled after Ethereum’s ERC-20 token standard. An anonymous on-chain advisor by the name of Domo introduced the standard in March of this year.

Particularly in light of the PEPE memecoin’s explosive rise, the BRC-20 standard coin has quickly emerged as a significant pattern in the sector of cryptocurrency. Over the previous seven days, the value has increased by more than 500%, hitting a historic hike of $0.00000216 on 5th May.

The growing memecoin hype is not just affecting the BTC blockchain. On the blockchain of Ethereum, gas costs have recently been rising dramatically and reaching new highs. According to Crypto Fees, on 2nd May, the total amount of ETH trade fees exceeded $19 million, reaching a record for the first time ever since May last year.