Ordinals Maintain Dominance Despite Price Decline

Despite the recent price decline of Bitcoin and claims that enthusiasm for Bitcoin NFTs has diminished, ordinal inscriptions have maintained a significant presence on the Bitcoin network, demonstrating their resilience and continued usage.

On August 21, an Ordinals developer known as “Leonidas” highlighted that Bitcoin had witnessed 530,788 transactions in the past 24 hours, with a remarkable 450,785 of these transactions being related to ordinals. Amidst discussions that ordinals had lost their relevance, Leonidas pointed out that these inscriptions contributed to a substantial 84.9% of Bitcoin’s overall activity.

This assertion is backed by data from Dune Analytics, which indicated that more than 400,000 ordinal inscriptions were recorded on August 20. Additionally, Bitinfocharts reported a daily Bitcoin transaction count of approximately 556,000, further corroborating the dominance of ordinal inscriptions. This effectively means that over three-quarters of the network’s recent activity was tied to ordinals on August 20.

Industry researcher Eric Wall further emphasized this trend, noting that during the week, 54% of transactions on the Bitcoin network were ordinals-related. According to Dune Analytics, the cumulative count of ordinal inscriptions has reached 25.5 million, generating fees amounting to $53.4 million within the Bitcoin network.

The current wave of inscriptions predominantly revolves around BRC-20 token minting, with 1.9 million of these tokens being minted in the past week.

These recent observations offer a counter perspective to a report by DappRadar on August 17, which claimed that the utilization and sales volume of ordinal NFTs had diminished since its peak in May. However, it’s important to note that the DappRadar report specifically tracked the sales and trading volume of NFTs minted on the Bitcoin network, rather than focusing on the actual inscription activity, which seems to remain robust.

Bitcoin ordinals represent nonfungible asset artifacts that enable the inscription of data onto a Satoshi, the smallest unit of Bitcoin. Launched in January, the protocol gained significant attention in the subsequent months, as thousands of ordinals were minted on the Bitcoin network, leading to congestion and spikes in transaction fees during the peak of the trend in April and May.

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