Majority of Bitcoin Transactions Still Dominated by Ordinal Inscriptions Despite Price Collapse
Despite the recent decline in the price of Bitcoin and speculations that the hype around Bitcoin NFTs has died down, ordinal inscriptions continue to dominate the activity on the Bitcoin network. According to developer “Leonidas,” out of the 530,788 transactions that occurred in the past 24 hours, 450,785 were related to ordinals, accounting for 84.9% of the total activity on Bitcoin.
This trend is supported by data from Dune Analytics and Bitinfocharts, which report that over 75% of the network’s current activity is ordinal-inscription-related. Industry researcher Eric Wall also observed that 54% of the transactions on the Bitcoin network over the week were ordinals.
Ordinal Inscriptions: A Closer Look
Ordinal inscriptions refer to nonfungible asset artifacts called Bitcoin Ordinals. These artifacts allow data to be inscribed onto a Satoshi, which is the smallest division of a Bitcoin. The protocol was launched in January, and since then, the hype around these inscriptions has grown rapidly.
However, the recent decline in the sales and trading volume of Bitcoin NFTs, as reported by DappRadar, may have led some to believe that the hype has died down. But it’s important to note that the decline in NFT usage and sales volume doesn’t necessarily reflect the level of inscription activity on the Bitcoin network, as seen by the dominance of ordinals in recent transaction data.
The Continued Growth of Ordinal Inscriptions
According to Dune Analytics, there have been a total of 25.5 million ordinal inscriptions on the Bitcoin network, generating $53.4 million in fees. The current dominant use case for inscriptions is the minting of BRC-20 tokens, with 1.9 million of them minted in the past week.
The surge in inscription activity has caused congestion on the Bitcoin network and spikes in transaction fees, with April and May experiencing peak levels. However, despite the price collapse of Bitcoin and the perceived decline in NFT hype, ordinal inscriptions continue to thrive.
Future Outlook for Bitcoin Ordinals
It remains unclear what the future holds for Bitcoin ordinals and the overall NFT market. While the hype around Bitcoin NFTs may have subsided, the ongoing dominance of ordinal inscriptions suggests that there is still strong interest and activity in this space.
As the Bitcoin network evolves and new upgrades are introduced, the use cases for ordinals may expand beyond the current focus on BRC-20 token minting. It will be interesting to see how the market for Bitcoin ordinals develops and whether it can sustain its high activity levels in the long term.
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