Vast Majority of Bitcoin Transactions Involve Ordinals, Despite Large Volume Decline
Ordinals are still dominating Bitcoin’s (BTC) blockchain, with the majority of transactions on the network involving them, despite a large price decline.
Bitcoin ordinals allow users to inscribe digital assets such as images and videos to a single satoshi, or an individual unit of BTC, to create the equivalent non-fungible tokens (NFTs) on the crypto king’s network.
According to Dune Analytics, there were 411,511 ordinal inscriptions on the Bitcoin network within the last 24-hour window on August 21. In the same time period, BitInfoCharts has the number of daily Bitcoin transactions recorded as 567,794, suggesting that roughly 72% of all Bitcoin’s activity is currently tied to ordinals.
Pseudonymous ordinal developer Leonidas said that at one point, the nascent ecosystem was responsible for 85% of all Bitcoin activity.
“Over the past 24 hours Bitcoin had 530,788 transactions.
450,785 of those transactions were Ordinals related.
In the midst of everyone claiming ‘Ordinals are dead’ they have literally accounted for 84.9% of the activity on Bitcoin.
You can’t make this stuff up.”
Ordinals have established their dominance despite a significant market downturn and drop in volume. According to blockchain analytics platform CryptoSlam, sales of ordinals have gone down 54% in the last 30 days, and volume hasn’t yet breached the all-time high set in May.
BRC-20 is a new experimental token standard built for Bitcoin, created by the pseudonymous developer Domo.
BRC-20s, which borrow ETH’s “ERC-20” designation, use ordinals, or inscriptions built into satoshis, to deploy, mint and transfer tokens. While loosely modeled after the ERC-20, the BRC-20 is substantially distinct due to the different architecture of Bitcoin’s blockchain.
Explains Domo,
“This is just a fun experimental standard demonstrating that you can create off-chain balance states with inscriptions. It by no means should be considered THE standard for fungibility on Bitcoin with ordinals, as I believe there are almost certainly better design choices and optimization improvements to be made.
Consequently, this is an extremely dynamic experiment, and I strongly discourage any financial decisions to be made on the basis of its design. I do, however, encourage the Bitcoin community to tinker with standard designs and optimizations until a general consensus on best practices is met (or to decide that this is a bad idea altogether!).”
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The post Vast Majority of Bitcoin Transactions Involve Ordinals, Despite Large Volume Decline appeared first on The Daily Hodl.
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Author: Alex Richardson
