Since 2022, when bitcoin went through a protracted bear market before enjoying a recovery in Jan 2023, the cryptocurrency has made great progress. The top cryptocurrency has since dropped to levels last seen in late 2020, nevertheless, as a result of unfavorable regulatory developments.
The new asset class has caused an increase in network activity and higher transaction fees. This is a first for Bitcoin in its 14-year history. Additionally, the rise in activity is the result of introducing a new class of assets.
Ordinals drove the recent surge in Bitcoin network usage due to their greater data capacity. They have also attracted new active users.
The launch of Ordinals, Bitcoin’s non-fungible tokens (NFTs), according to Glassnode, the top data analytics platform, has increased the total number of addresses with non-zero balances to a new high of 44.06 million addresses.
The report highlighted a positive development in Bitcoin, as new addresses entering the network exceeded the annual average since the FTX bankruptcy. This indicates increasing adoption and usage of cryptocurrency. The report suggests that this trend may lead to future price increases.
Furthermore, the impact of Ordinals on the Mean Block Size has been noteworthy. The upper range of the mean block size has surged from a consistent 1.5 to 2.0MB to a range of 3.0 to 3.5MB in the past week.
Directly Inscribe Diverse Data With Ordinals On Bitcoin Blockchain
The appearance of Ordinals and Inscriptions was unanticipated, resulting in a significant increase in demand for block space. However, it may differ from the typical transfer of coin wealth between investors. Despite this, it has led to a significant surge in demand for block space.
The report described it as a “new and unique moment” in Bitcoin’s history. This is the first time innovation has generated network activity without transferring coin volume for monetary purposes. The report highlights that this is a remarkable development in the Bitcoin ecosystem.
A software engineer named Casey Rodarmor launched Ordinals on the Bitcoin mainnet on Jan 21. Ordinals allow for the direct inscription of digital artifacts like pictures, text, and even video games on the blockchain. Expanding the utility of the Bitcoin blockchain enables storing of a more diverse range of data.
The BTC community is divided over the asset class. A report by FSInsight suggests NFTs could affect Bitcoin’s next bull run. The inclusion of non-fungible data is the focus of the research.
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The report suggested that NFTs could help drive demand for block space as the digital asset continues to gain acceptance as money.
This article conveys general information and the opinions expressed should not be considered personal advice for any individual or specific security or investment product.