Ordinals Dominate Activity On Bitcoin Despite Price Collapse

Ordinals Dominate Activity On Bitcoin Despite Price Collapse

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Bitcoin Ordinals are going nowhere, with data reporting that nearly 85% of network activity on Bitcoin was Ordinals-related. 

The Bitcoin Ordinal’s domination comes despite the fact that Bitcoin’s price has seen a considerable decrease and suggestions that the hype around Bitcoin NFTs may have taken a back seat. 

Ordinals Continue To Dominate Bitcoin Network 

On the 21st of August, Bitcoin Ordinals developer Leonidas took to X (formerly Twitter) to highlight that Bitcoin had around 530,788 transactions over the past 24 hours. Leonidas stated that out of this number, 450,785 were transactions that were related to Ordinals. Leonidas stated in their post, 

“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.”

Data from Dune Analytics backed up the trend, with the platform reporting that the 20th of August saw over 400,000 Ordinal inscriptions. Meanwhile, data sourced from Bitinfocharts reported a daily Bitcoin transaction count of around 556,000. According to these numbers, over three-quarters of activity on the 20th of August on the Bitcoin network was related to Ordinals. 

“85% of on-chain bitcoin transactions in the past 24 hours are ordinals related EIGHTY FIVE PERCENT the main use case of the bitcoin chain is ORDINALS.”

According to industry researcher Eric Wall, the past week saw 54% of the transactions on the Bitcoin network were Ordinals or related to Ordinals. Data sourced from Dune Analytics has shown that there have been a total of 25.5 million Ordinals inscriptions, which have generated over $53 million in fees on the Bitcoin network. Currently, BRC-20 token minting dominates inscriptions, with over 1.9 million of them mined during the previous week. 

Numbers In Stark Contrast To DappRadar Report 

These figures and claims are in stark contrast to a report published by DappRadar on the 17th of August. The report claimed that Ordinals NFT usage and sales volume had registered an “alarming plunge,” and trading volume had tanked by a staggering 98% since peaking in May. 

DappRadar showed its data which showed that the total Bitcoin Ordinals sales volume had dropped from a peak of $452 million in May to around $3 million as of the 14th of August. It described the scenario as “grim” for the larger Ordinals market. However, it also emphasized that it would need more time to determine if the situation was a temporary setback or a systemic problem with Bitcoin-based NFTs. The report stated, 

“This steep decline in both sales volume and count within such a short period is alarming for Bitcoin Ordinals. The diminishing sales count underscores the waning enthusiasm or perhaps confidence in Bitcoin NFT. While fluctuations in sales volume could be attributed to market dynamics, a consistent decline in transaction count may point toward broader issues. It suggests that fewer traders are engaging with Bitcoin Ordinals, which could raise concerns about its longevity and relevance in the NFT space.”

However, many have pointed out that the DappRadar report looked at the sales and trading volume of those NFTs that were minted on the Bitcoin network. However, it did not look at the actual inscription activity, which they pointed out was very high. 

A Divided Community

DappRadar suggests in its report that a key issue regarding the sustainability of Ordinals is that the Bitcoin community is split down the middle on whether NFTs should even be on the Bitcoin network or not. This is not an issue when it comes to blockchains such as Ethereum, which has a thriving NFT community. According to DappRadar, many in the Bitcoin community view Bitcoin as “digital gold” and that its primary function is that of a store of value. The report added,

“There are voices within the community that view Bitcoin primarily as ‘digital gold,’ suggesting that its primary function should remain as a store of value. On the other hand, Ethereum is often referred to as ‘digital oil,’ indicating its role in fueling the digital economy. The coming months will be crucial in determining whether Bitcoin finds a foothold in the ever-evolving NFT landscape or reverts to its primary role as a store of value.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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