Bitcoin Ordinals Shake Things Up on the Blockchain

Bitcoin Ordinals and BRC-20 tokens are causing division among network members. However, the recent frenzy around this protocol leads to an unparalleled level of competition. Along the same lines, the blockchain is witnessing one of its best performances in several months with increased transaction fees.

Bitcoin Ordinals Storming the Network

The ordinal revolution has been making waves for months. This refers to tokens that store and directly modify data on the Bitcoin blockchain. While ordinal assets like BRC-20 tokens divide network members, they can bring a significant number of on-chain transactions for Bitcoin miners.

Herein lies the issue, as they can clog the mempool and increase competition for contract confirmations. Thus, the resurgence in hype around Bitcoin Ordinals is drawing increased attention that directly impacts transaction fees.

According to live blockchain data from Mempool.space, the network currently has over 120,000 transactions awaiting confirmation. This figure is significantly higher compared to October’s number, which was below 30,000 unconfirmed transactions.

As anticipated, such activity brings consequences, notably an increase in transaction fees. During this intense period, fees need to be raised, or else confirmation times will be significantly delayed.

Unprecedented Enthusiasm for this Technology

The Ordinals protocol is attracting numerous projects, from BRC-20 tokens to NFTs and the stablecoin Stably USD. Even though Bitcoiners criticize the extended functionalities of this technology, others like Vitalik Buterin praise the initiative.

For the crypto entrepreneur, Bitcoin Ordinals bring back a culture of practical action and combat the laser-eyed maximalist movement. He’s not alone in this thinking, as the number of registrations is increasing over time. Indeed, statistics from the GeniiData platform reveal that nearly a million mining transactions took place in the past seven days.

During the same period, the most active projects have also shifted over time. Considering these developments, many believe that the popularity of new projects will increase once a segment is completed.

Ultimately, Bitcoin miners are the primary beneficiaries of this situation. According to Glassnode, 8.5% of their income came from increased transaction fees on the blockchain, marking the highest daily rate in six months. Bitcoin Ordinals truly bring a fresh perspective to the ecosystem, justifying the increasing influx of projects into this realm.