The market for Inscription tokens is booming and BTC GAS fees are soaring. Is this temporary or a trend?
Bitcoin gas fees hit a 20-month high of $100 on July 20, 2023, according to BitInfoCharts. This is comparable to the level when Bitcoin hit $69,000.
The main reason for the surge in Bitcoin gas fees is the popularity of Inscription tokens. Inscription tokens are tokens based on the BRC-20 protocol. They have the characteristics of low handling fees and high throughput, and have been sought after by investors. Against the backdrop of the booming market for Inscription Tokens, a large number of investors poured into the Inscription Token market, causing congestion on the Bitcoin network.
In addition, transactions with Inscription Tokens usually require high gas fees to ensure fast delivery of transactions. This also pushes up Bitcoin gas fees further.
So, are Bitcoin gas fee spikes just a temporary trend?
This depends on whether the market for Inscription Tokens will continue to be hot. If the Inscription token market continues to be hot, Bitcoin gas fees may remain high or even rise further.
The surge in Bitcoin gas fees may be a temporary trend, but the possibility of remaining high for a long time cannot be ruled out. It is recommended to pay close attention to the market situation of Inscription Tokens and take appropriate risk control.
