Bitcoin miners have experienced a significant windfall, raking in approximately $30 million in transaction fees during the initial ten days of this month, thanks to the resurgence of Bitcoin Ordinals Inscriptions. Over this period, the average transaction fees on the Bitcoin blockchain network surged to previous highs, reaching as much as $15.86 on November 9, according to data from Bitinfocharts.
Bitcoin Ordinals helps miners amass 830 BTC in fees
Data sourced from TheMinerMag reveals that miners have amassed around 830 BTC in transaction fees, valued at $30.7 million, marking 9% of Bitcoin miners’ monthly rewards— the highest percentage since May. For perspective, Blockchain.com indicates that on November 10 alone, Bitcoin miners pocketed $1.3 million from transaction fees. TheMinerMag speculates that if this trend persists, Bitcoin miners’ monthly mining revenue could become the second-highest of 2023.
Observers attribute this upswing in transaction fee earnings to renewed interest in Bitcoin Ordinals, echoing a trend observed in May. Bitcoin Ordinals Inscriptions function similarly to NFTs, representing assets engraved into one Satoshi, the smallest BTC denomination. Earlier in the year, these assets generated substantial interest, contributing to heightened network activity. The current resurgence is fueled by Binance’s listing of Ordinals (ORDI), which has reignited attention on the asset class.
Binance listing ignites increased miner activity
Binance’s dominance, controlling over 50% of the crypto market’s trading volume, has played a pivotal role in amplifying this renewed interest. Capitalizing on increased mining revenues and surging prices, Bitcoin miners are converting their BTC into cash. Ali Martinez, BeInCrypto’s Global Head of News, notes that since late October, miners have liquidated over 5,000 BTC, approximately $175 million. Supporting this data, Glassnode reports a noticeable reduction in the Bitcoin holdings of all miners. From October 23, where holdings stood at 1.833 million, the figure dropped to 1.829 million by November 7.
This trend aligns with Bitcoin’s climb beyond $34,000 in late October, reaching a yearly high of nearly $38,000. The market sentiment surrounding the potential approval of a spot Bitcoin ETF drove this upswing. The resurgence of Bitcoin Ordinals Inscriptions has provided a lucrative opportunity for Bitcoin miners, significantly boosting their transaction fee earnings. As Binance’s listing rekindles interest in this asset class, miners are seizing the moment to convert their BTC into cash. The ongoing trend, if sustained, could position Bitcoin miners for one of their most profitable months in 2023.
