• Bitcoin’s average daily transaction fees have surpassed those of Ethereum, reaching $10.34 on November 20, while Ethereum fees stood at $8.43.
• The surge in Bitcoin transaction fees is attributed to renewed market interest in assets using the Ordinals Protocol.

While the Bitcoin price has been consolidating at around $37,500 levels, the network activity has shot up significantly at the same time. The average daily transaction fees for Bitcoin (BTC) have surpassed those of Ethereum (ETH), with Bitcoin fees at $10.34 and Ethereum fees at $8.43 as of November 20.

This shift occurred amid increased activity related to Ordinals on the Bitcoin network. On November 16, Bitcoin’s average daily trading fee reached a six-month high of $18.67, while Ethereum fees reached $7.90, as per data from BitInfoCharts.

The recent increase in Bitcoin transaction fees can be attributed to a revived market interest in assets utilizing the Ordinals Protocol. This protocol serves as a tool for generating non-fungible token (NFT)-like assets and BRC-20 tokens on the Bitcoin network. After a notable period of inactivity from September 25 to October 23, assets based on the Ordinals Protocol experienced a significant surge in late October, as indicated by data from Dune Analytics.

Since October 24, the creation of over six million Ordinal assets has resulted in the redistribution of more than 800 BTC in fees, equivalent to approximately $30 million, to the network. The surge in Ordinals inscription activity intensified following the listing of ORDI, the second-largest BRC-20 token by market cap, on Binance on November 7.

This listing triggered a broader wave of BRC-20 buying activity, causing the price of the ORDI token to surge by just over 50% on that day. Moreover, on November 17, the Ordinals-based project Taproot Wizards announced a $7.5 million seed round.

What’s Next for Bitcoin?

Analysts have been having a strong hope that the Bitcoin price could rally all the way to $40,000 and beyond with another major bull trigger. All hopes are currently for the approval of the Bitcoin ETF.

Bitcoin continues to show strength on its technical charts as well. Popular crypto analyst Michael van de Poppe stated that Bitcoin is consistently advancing, establishing higher lows and challenging resistance for the fourth consecutive time. Anticipating a potential breakout towards $40K followed by a rapid downturn wouldn’t be surprising. The strategy remains to capitalize on opportunities by buying during market downturns.

Commenting on the downside, veteran analyst Willy Woo noted that the BTC price won’t fall further below $30,000.

Renowned crypto analyst Willy Woo suggests that Bitcoin (BTC) might not dip below the $30,000 mark again if the current on-chain pattern proves accurate. Woo, who has accurately predicted such patterns eight times before, shared insights into Bitcoin’s 13-year price discovery journey.

The chart provided by Woo serves as a contour map, illustrating BTC supply based on the prices HODLers paid and how it has changed over the years. Notable features include dense horizontal bands, indicating price regions where a significant portion of the supply shifted among investors, reflecting robust agreed-upon value.

Woo identifies a pattern in instances where Bitcoin experienced strong bands of agreed-upon prices, emerged from a bear market, and approached the next halvening (marked in vertical bands). In such scenarios, the price has historically not returned to retest the established support band.

Providing context to the “up only” trend, Woo notes that Bitcoin’s ongoing adoption contributes to this pattern. The chart spanning 13 years showcases the widespread acceptance of BTC. In 2010, the network had 10,000 users, and today, over 300 million people use it as a store of value technology. This trend is expected to intensify further with the potential introduction of a spot ETF.