Bitcoin continues to fall, virtual currency transaction fee problem emerges


Macroeconomics and financial markets

In the US NY stock market on the 8th, the Dow Jones Industrial Average fell 55 dollars (0.2%) from the previous day, and the Nasdaq Index closed at 21.5 points (0.2%) higher than the previous weekend.

connection:Nasdaq rises slightly ahead of CPI, Buffett is bullish on Japanese stocks | 9th Financial Tankan

connection:Stock investment recommended for cryptocurrency investors, representative cryptocurrency stocks of Japan and the United States “10 selections”

Virtual currency market

In the crypto asset (virtual currency) market, Bitcoin fell 2.3% from the previous day to $ 27,616.

BTC/USD daily

With the release of indicators such as the CPI (US Consumer Price Index) on the 10th and the US Producer Price Index (PPI) on the 11th, market adjustment selling took precedence.

Among the major alts with the highest market capitalization, XRP, Dogecoin (DOGE), Polygon (MATIC), and Solana (SOL) are all 5-10% weaker than the previous week.

Most recently, funds have been flowing into memecoins led by Pepe Token (PEPE), and as of the 7th, PEPE’s daily trading volume was $2.37 billion, more than three times that of XRP, the fourth place.

The bankruptcy filing of Bittrex, a long-established crypto asset (virtual currency) exchange in the United States, also contributed to the deterioration of market sentiment. Filed for Chapter 11 bankruptcy in federal court in Delaware. Total debt is between $500 million and $1 billion.

Bittrex was sued by the U.S. SEC (Securities and Exchange Commission) for violating securities laws in April this year, and the global version of Bittrex Global will continue to provide services to customers outside the U.S.

connection:Cryptocurrency exchange Bittrex files for bankruptcy in the US

Regarding the drop in the Bitcoin and altcoin markets, there is also the view that rising Bitcoin transaction fees and transaction congestion led major cryptocurrency (virtual currency) exchanges such as Binance to suspend remittances, triggering risk-averse selling. be.

The number of pending outstanding transactions in mempool reached the equivalent of half a million as of yesterday.

On the other hand, with the rapid spread of Bitcoin NFT (non-fungible token) called Ordinals Protocol (Inscriptions) and “BRC-20 (Bitcoin Request for Comment)” token, miner profits have increased significantly. there is

The market capitalization of the BRC-20 token has reached an estimated $1.6 billion, but many experts are sounding the alarm because it is an experimental system.

On the 7th, the transaction fee of some miners temporarily reached 6.7 BTC, exceeding the block reward amount.

According to data from BitInfoCharts, the average transaction fee on the Bitcoin network has soared to the $20-30 range (3,000-4,000 yen), the highest level since May 2021. Until last week, the average Bitcoin transaction fee was around 1/10.

bitinfo charts

connection:Countdown to the next Bitcoin half-life less than a year away, market trends and expert predictions?

Regarding the recent surge in Ethereum transaction fees (Gas), some point out that the Meme Coin boom is taking advantage of the revitalization of “MEV (Miner Extractable Value)”.

In order to maximize the profit of arbitrage (arbitrage trading), it uses front-running and sandwich attacks that interrupt the execution order of other traders’ buying and selling orders on the decentralized exchange.

Problems have resurfaced, with the contract price being at a disadvantage and increasing the slippage and increasing gas costs.

connection:Contributing to the improvement of Ethereum’s gas price rise, the actual situation of the research and development organization Flashbots

connection:Bitcoin remittance clogging becomes serious, Ethereum foundation sells ETH

Click here for a list of market reports published in the past

The post Bitcoin continues to fall, virtual currency transaction fee problem emerges appeared first on Our Bitcoin News.


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