Kornelija Kazlauskas 
The bitcoin blockchain is experiencing a surge in daily transactions reaching an all-time high of 682,000 this month, according to data from Glassnode . This milestone marks a significant increase of almost 40% compared to the previous peak in 2017 . Furthermore, bitcoin’s dominance in the overall cryptocurrency market has grown from 38% at the beginning of the year to 44% .
Bitcoin’s Dominance and Daily Transactions Reach New Heights
The rising number of daily transactions on the bitcoin blockchain is attributed to the emergence of BRC-20 tokens which are the first class of crypto tokens built on the bitcoin blockchain apart from bitcoin itself . These experimental coins have already generated nearly 25,000 transactions this year driving the overall transaction volume to new heights . Data from Blockchain .com reveals that the average daily transactions over seven days currently stand at over 531,000 which is nearly double the volume from a month ago .
The Emergence of BRC-20 Tokens on Bitcoin Blockchain Fuels Transaction Growth
The introduction of BRC-20 tokens a growing interest in bitcoin as more than just a store of value or a payment method . Bitcoin’s blockchain is now being seen as a foundation for developing new coins and applications which was previously associated with more modern blockchains like Ethereum and Solana . Investors and developers view bitcoin’s blockchain as a safer long-term basis for creating tokens and applications given the recent market turbulence and the flight from riskier assets .
Bitcoin’s Blockchain Attracts Interest for Token Development Amidst Market Volatility
While the rapid creation of BRC-20 tokens has contributed to increased activity on the bitcoin blockchain it has also faced volatility . The total value of these tokens surpassed $1 billion in early May but has since declined to $446 million according to tracker BRC-20 .io . Despite the challenges market players perceive the trend as promising indicating a growing interest in building products on the bitcoin blockchain . However some critics argue that the issuance of BRC-20 tokens has made it more challenging for users seeking to utilize bitcoin for its original intended purposes .
Transaction Surge Creates Challenges: Rising Fees and Network Congestion
The surge in BRC-20 tokens has not had a significant impact on bitcoin’s price, which has remained below $30,000 since mid-April . However the increased token creation has resulted in rising transaction fees and network congestion on the bitcoin blockchain . “Gas” fees have reached near all-time highs with users experiencing delays of over 30 hours for transaction confirmations . While congestion has somewhat eased it has highlighted the limitations of bitcoin’s technology and prompted discussions around scalability and transaction efficiency . The challenges caused by rising fees and network congestion underscore the need for continued development and optimization of the bitcoin blockchain to ensure better operations as transaction volumes continue to grow .
