According to ChainCatcher, Galaxy Research said in a report that the vast majority of Bitcoin rollups will be unsustainable. Due to transaction fees, Bitcoin Rollups require millions of dollars per year to maintain.
“Each individual data publishing transaction can take up to 400KB (0.4MB) of block space, effectively taking up 10% of the entire block,” Galaxy wrote. “With multiple Rollups expected to publish data every 6-8 blocks, Rollups could quickly drive base layer fees to new highs and make small transactions prohibitively expensive. Given the competition for block space, only the Rollups that can generate the most fee revenue and pay the block fees will be able to stay in business.”
Galaxy estimates that in a low-fee environment, when ordinary transactions cost 10 sats/VB, rollups would incur $460,000 in monthly fees to maintain Bitcoin security. A high-fee environment of 50 sats/VB could result in monthly costs of $2.3 million when Ordinals or tokens minted via the Runes or BRC-20 standards are active.
