Ordinal Still Accounts for Majority of Bitcoin Transactions Despite Price Drop

    Despite the recent price decline and speculation about the waning buzz surrounding Bitcoin NFTs, ordinal inscriptions have remained the predominant activity on the Bitcoin network in the past week.

    According to “Leonidas,” the Ordinals developer, on August 21, Bitcoin recorded a total of 530,788 transactions in the past 24 hours, out of which 450,785 transactions were related to Ordinals. He pointed out that despite claims of Ordinals being dead, they actually accounted for 84.9% of the activity on the Bitcoin network.

    The trend is supported by data from Dune Analytics, which reveals that on August 20, there were over 400,000 ordinal inscriptions. Additionally, Bitinfocharts reports approximately 556,000 daily Bitcoin transactions. Consequently, it can be inferred that more than 75% of the network activity on that day was related to Ordinals.

    Eric Wall, an industry researcher, further contributed to the discussion by noting that over the course of the week, 54% of the transactions occurring on the Bitcoin network were related to Ordinals.

    Dune’s data reveals that there have been 25.5 million Ordinal inscriptions on the Bitcoin network, resulting in fees totaling $53.4 million.

    The majority of inscriptions currently revolve around BRC-20 token minting, with a notable 1.9 million of them being minted last week.

    These recent findings present a contrasting view to a DappRadar report from August 17, which stated that Ordinals NFT usage and sales volume had significantly decreased since reaching a peak in May. This has led some cryptocurrency observers to declare that the hype surrounding Ordinals has subsided.

    Nevertheless, it is important to note that the aforementioned report focused on tracking the sales and trading volume of NFTs minted on the Bitcoin network, rather than the actual activity of inscribing data, which still seems to be quite high.

    Ordinals in the realm of Bitcoin are unique artifacts that allow for the inscription of data onto a Satoshi, which is the smallest unit of Bitcoin.

    Introduced in January, the protocol experienced a surge in inscription hype over the following months, resulting in the minting of thousands of Ordinals on the Bitcoin network. This surge led to congestion and spikes in transaction fees, with the peak occurring in April and May.

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