Bitcoin Ordinals have recently taken the crypto industry by storm, with registrations surging to an all-time high of 3.4 million last week. This explosion of interest in the protocol is exciting news for the NFT market and suggests that the crypto industry is becoming more interested in NFTs and their applications beyond Ethereum.
Ordinals Protocol allows users to embed data into the Bitcoin blockchain by inscribing references to digital art into small Bitcoin-based transactions. Despite the skyrocketing fees, the surge in daily enrollments began on April 21st and peaked on May 1st, with over 372,000 enrollments in just 24 hours. This surge in registrations contributed to an all-time high in daily BTC transactions on May 1st, reaching 682,281.
Although most registrations for the protocol are text-based, followed by applications and JPEG images, the surge in enrollments is significant for the industry. Bitcoin Ordinals NFT is compliant with the BRC-20 standard – Bitcoin Request for Comment number 20 – which was introduced last March, enabling new tokens to be minted on the BTC network.
I can’t believe my eyes
BRC-20 demand leading to a 700% increase in fees AFTER what we’ve seen with Ordinal Inscriptions
12,800% increase in fees from BEFORE Ordinal Inscriptions launched
300,000 unconfirmed transactions in the mempool pic.twitter.com/oyLceu6ODe
— trevor.btc @ NYC (@TO) May 2, 2023
What’s also interesting is that BTC maximalists used to be very opposed to ordinals, but appear to be coming around. The surge in registrations may be evidence that Bitcoin Ordinals NFT is becoming more accepted among BTC maximalists as they realize the potential for NFTs on the Bitcoin blockchain.
The explosion in numbers and daily enrollments is exciting news for the crypto industry and suggests that there is a growing demand for NFTs on the Bitcoin blockchain. With the surge in interest in Bitcoin Ordinals NFT, we can expect to see more innovation and growth in the NFT market.
Bitcoin Ordinals NFTs are not only contributing to the growth of the NFT market but also to the overall Bitcoin network by incentivizing miners, prioritizing valuable transactions, and enhancing network security. While the high fees may put a higher price tag on transactions on the network, proponents of Ordinals believe that the benefits outweigh the costs and that it opens up new use cases for Bitcoin, bringing in liquidity, new users, and developers, ultimately making Bitcoin more valuable through better user experience and more use cases.