The latest developments in crypto transactions confirmed increased transaction charges from the previous $19.21 per transaction to about $30 per transaction. These increments reportedly came into effect between 7th May and 8th May. On a rather impressive note, XRP, the embattled digital currency designed for cross-border transactions, still averages a $0.0002 transaction fee.
Bitcoin Fees at the Highest Level
According to ycharts, BTC’s new transaction fees are the highest ever recorded for use in Bitcoin’s blockchain. The news transaction charges did not go down well with most crypto traders and most seem to have reacted adversely to the latest development.
Recall that transaction charges are the extra fees paid in USD on confirmation and processing of a transaction. These charges are bound to increase than the usual prices during periods of network gridlock.
Suspected Reasons For The Increase In BTC’s Transaction Fees
The hike in Bitcoin’s transaction charges could be due to the expansion in Bitcoin activities involving BRC-20 transactions. Also, the sudden peak in Bitcoin Non-Fungible-Tokens (NFTs) could be a massive factor that will play a central role in the hike of Bitcoin’s transaction fees.
Meanwhile, the BRC-20 is an experimental standard for tokens on the Bitcoin blockchain. The BRC-20 was introduced this year around March, and just like ERC-20 of the Ethereum blockchain, BRC-20 makes it possible for users to issue fungible tokens via Bitcoin’s Ordinals protocol. BRC-20 is gradually growing in popularity. So far, BRC-20 has attracted prominent meme coins like PEPE.
Why XRP Transaction Fees Appear Fairly Stable Every Time
Unlike Bitcoin, you can not mine XRP, making XRP have a low transaction cost. The low transaction cost remains one of the most significant advantages XRP has over Bitcoin. Aside from its low transaction fees, XRP also boasts of rare transactions that can be completed within a period of three to five seconds.
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