Bitcoin network faces challenges with soaring fees and a significant backlog of unconfirmed transactions, as the rise of BRC-20 coins puts the cryptocurrency “under siege,” according to an analyst. Axel Adler Jr., an analyst at CryptoQuant, highlighted that the BRC-20 memecoin trend on the Bitcoin blockchain is driving up demand for block space. Unlike Ethereum’s ERC-20 tokens, BRC-20 coins don’t use smart contracts and solely rely on Bitcoin blockchain-compatible wallets. On May 9, the average transaction fee reached over $16, peaking at $29, while Bitinfocharts reported a spike in fees to $31.
The backlog of unconfirmed transactions, currently numbering around 400,000, is causing delays in clearing the network. Bitcoin core developers are considering measures to address the issue, as the market capitalization of BRC-20 tokens surpasses $1 billion. Despite the challenges, miners are benefiting from increased profitability, with hash price surging 66% since the start of the month.