The Bitcoin blockchain has recently encountered a notable challenge, with thousands of transactions awaiting approval. This backlog is a glaring indication of the network congestion that has plagued the blockchain in recent times. The question arises: what has been the cause of this persistent issue?

Bitcoin Inscriptions Return to the Spotlight

In the earlier months of 2023, the Bitcoin network experienced a significant surge in popularity with its own version of non-fungible tokens (NFTs) known as Inscriptions. These Inscriptions quickly gained traction among users, causing the network to become congested and transaction fees to skyrocket.

However, over the last few months, the Inscriptions frenzy seemed to have subsided, allowing miners to resume their regular operations. Unfortunately, on November 4-5, the interest in Bitcoin Inscriptions began to surge once again.

On November 4, the number of Bitcoin Inscriptions reached its second-highest daily volume, with over 433,000 inscriptions made on the blockchain. This figure was only surpassed by September 15, when 440,760 inscriptions were recorded.

Similar to what transpired in September, this sudden influx of inscriptions led to a spike in BTC transaction fees, resulting in a substantial backlog. Average fees soared to over $5.9, marking one of the highest fee levels witnessed in 2023. Unfortunately, fees have yet to return to more manageable levels, as per data obtained from YCharts.

Projects Driving the Surge in Inscriptions

According to the Ordinals Wallet’s official X handle, the rise in Inscriptions has been driven by various projects, including rats, GROK, stas, and DOG1. While other projects such as doge, insi, and rabs have also contributed, the first four mentioned account for the majority of transactions.

Over 157,000 Transactions Remain Unconfirmed

As a consequence of the spike in Bitcoin Inscriptions and the accompanying surge in transaction fees, thousands of users have found their BTC transactions stuck on the blockchain, awaiting confirmation. Currently, according to Archive Today, there are approximately 157,101 unconfirmed BTC transactions within the blockchain.

These transactions primarily lack priority, while higher priority transactions are being processed at an average fee of $3.38. Given the substantial backlog, it may take a couple of days for miners to clear these unconfirmed transactions completely.

Furthermore, as of Tuesday, November 7, there has been a decline in the number of Bitcoin Inscriptions, with approximately 72,000 daily inscriptions. This suggests that space is gradually being freed up for the backlog to be resolved. If the decline in inscriptions continues, miners will be able to alleviate the backlog more swiftly. However, should another surge in inscriptions occur, this would further prolong the current inconvenience.

The resurgence of Bitcoin Inscriptions has once again led to network congestion and pending transactions. Users face the frustration of waiting for their BTC transactions to be confirmed while miners work diligently to clear the backlog. It remains to be seen whether the decline in inscriptions will persist, ultimately allowing the network to restore smoother transaction processing.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.