Memecoin makes Bitcoin network fees explode to over $71
The creation of the memecoin 'Memento Mori' caused an explosion in transaction fees on the Bitcoin network. In a short period, commissions reached values above US$71, highlighting the impact of memecoins on the blockchain network.
The currency, developed with the Runes protocol, was created by Casey Rodarmor, also responsible for the Ordinals and Runes protocols, which enable the creation of tokens on the Bitcoin blockchain.
The significant increase in rates occurred during the minting (or creation) process of the Memento Mori memecoin. According to mononaut, a developer specializing in mempool, transaction fees fluctuated between 5 and 989 satoshis per virtual byte (sat/vB). The variation was a response to strong competition among users who wanted to include their transactions in the nearest blocks.
In order to guarantee priority, users needed to offer higher values, which generated an increase in the average cost per transaction.
Each block mined in Bitcoin has a limited space. So when demand increases, as in the case of a new memecoin, fees tend to rise.
In block 868188, where Memento Mori made the biggest impact, the median cost per transaction exceeded US$71, and the total value of fees for this block exceeded 10.44 BTC, which represented more than US$755 thousand at the time.
Memecoin makes rate on the Bitcoin network skyrocket
Memento Mori, inspired by the Latin phrase “remember that you are going to die”, represents fleetingness, a concept expressed by its skull symbol.
The launch of these coins generates high demand for the inclusion of transactions in blocks, forcing users to increase their fees, as miners prioritize transactions with higher remuneration. This dynamic intensifies network congestion, and fees end up rising exponentially.
For comparison, on a typical block on the Bitcoin network, fees typically range between 3 and 7.3 sat/vB, with an average cost per transaction of approximately $0.60. However, with the creation of a memecoin, this average can multiply, as occurred in the case of Memento Mori and previously with DOG, another memecoin that also caused significant increases in rates.
Bitcoin mining works in a competition system, where transactions with the highest fees receive priority from miners. When memecoins are launched, the sudden increase in demand negatively impacts the cost of transactions on the network. These events reveal a volatile and unpredictable side of the Bitcoin network, especially when it comes to new tokens.
The launch of Memento Mori should generate even more repercussions, as the memecoin will be available for trading from November 2nd.