Bitcoin mining companies have earned approximately $30 million in transaction fees in the first ten days of this month, thanks to the resurgence of Ordinals Inscriptions.
During this period, the average transaction fee on the Bitcoin blockchain has returned to high levels, reaching $15.86 on November 9, according to Bitinfocharts data.
According to data from TheMinerMag, mining companies have accumulated about 830 BTC in transaction fees, valued at $30.7 million, as of the current month. This figure accounts for 9% of miners’ monthly rewards, the highest percentage since May.
In context, Blockchain.com reported that on November 10 alone, Bitcoin miners earned $1.3 million from transaction fees. TheMinerMag predicts that Bitcoin mining revenue for the month could be the second-highest in 2023 if this trend continues.
Market observers believe that this increase in transaction fee income is due to renewed interest in Bitcoin Ordinals, echoing a trend seen in May.
Ordinals Inscriptions work similarly to NFTs, representing assets inscribed on a Satoshi, the smallest denomination of BTC. These assets garnered significant attention earlier in the year, contributing to the network’s activity.
A similar scenario is unfolding now, driven by the listing of Binance’s Ordinals (ORDI). This has brought new attention to this asset class, as Binance controls over 50% of the cryptocurrency market’s trading volume.
Some Bitcoin mining companies are selling their holdings, taking advantage of increased mining revenue and higher prices, by converting their BTC into cash. Ali Martinez, Global News Director of BeInCrypto, noted that since late October, mining companies have liquidated over 5,000 BTC, equivalent to about $175 million.
Supporting this data, Glassnode reported a notable decline in Bitcoin holdings by all miners. From October 23, where the number of held stocks stood at 1.833 million, this figure decreased to 1.829 million on November 7.
This trend coincides with Bitcoin’s surge above $34,000 at the end of October, reaching a yearly high of nearly $38,000. Indeed, this increase was fueled by market sentiment surrounding the potential approval of a Bitcoin ETF spot.