According to mempool data, the Bitcoin (BTC) network is currently facing significant congestion with over 560,000 unconfirmed transactions. The data also shows that memory usage has skyrocketed to 1 GB and transaction fees have risen above 20 Sat/vB.
Congestion in the Bitcoin Network and its Potential Effects
Experts attribute the current congestion in the Bitcoin network to the frenzy surrounding Ordinals and BRC-20. Mempool data reveals that the average block mining time has increased to 10.9 minutes, indicating that miners are struggling to meet the unprecedented demand on the network.
This is not the first time the Bitcoin network has faced such congestion. Recently, Binance, the world’s largest cryptocurrency exchange by trading volume, had to temporarily suspend BTC withdrawals due to excessive load on the Bitcoin Blockchain and high transaction fees.
The increase in unconfirmed transactions and blocked blocks has raised concerns about the potential impact on the price of Bitcoin. Currently, there are over half a million transactions pending confirmation, leading to significant delays in Bitcoin users’ transactions. This situation can cause disappointment among users and may affect the availability of Bitcoin for daily transactions.
The surpassing of 20 Sat/vB in transaction fees has a significant impact, as it can hinder cost-effective ways for small-scale transactions and value transfers. High transaction fees may force users to seek alternatives or postpone transactions until the congestion issue is resolved.
Can Congestion in the Bitcoin Network Affect Altcoins?
While congestion and high transaction fees persist in the Bitcoin network, experts speculate that some users may turn to altcoins that offer faster and cheaper transactions. This could increase interest in certain altcoins and temporarily divert capital from Bitcoin to those altcoins. In June, when the Bitcoin network was congested, Stacks (STX) surprisingly outperformed many other altcoins.
With current data, Bitcoin is trading below $26,000, recording a minimal increase of 0.02% in the past 24 hours, at $25,738. The congestion in the network may contribute to the struggle of the crypto king in surpassing the $26,000 threshold.
