The Bitcoin network was very active in May, with transaction fees reaching a two-year high. This led to a good month for miners, who earn a portion of the transaction fees as a reward for processing transactions.
Ordinals and BRC-20 Activity Drive Up Transaction Fees
The surge in transaction fees was driven by activity on the Ordinals and BRC-20 protocols. Ordinals is an NFT protocol that launched on Bitcoin mainnet in January, and BRC-20 is a sidechain that allows for the creation of decentralized applications on Bitcoin.
Miners Earn More in Transaction Fees
As a result of the higher transaction fees, miners earned more in May than they have in recent months. Marathon Digital mined a record 1,245 bitcoins in May, up 77% from April. CleanSpark also saw a boost in production, mining 609 bitcoins in May, up 16% from April.
Transaction Fees Expected to Return to Normal Levels
The surge in transaction fees was temporary, and they are expected to return to normal levels in the coming months. However, the spike in fees gave miners a glimpse of the future, when transaction fees could become a more significant source of revenue.