- Bitcoin Ordinals Inscriptions recently spiked to one of its highest volumes.
- Ordinals’ impact on Bitcoin fees has, however, decreased over time.
Bitcoin Ordinals initially gained significant attention, but its value gradually decreased. Thus, leading many to believe it might have become obsolete. Nonetheless, recent developments have proven that it’s still very active and relevant. However, its influence on a specific metric has diminished.
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Daily Bitcoin Ordinals spikes
In a recent update by Leonidas, he stated that it was clear that the era of Bitcoin Ordinals was still ongoing, even in light of the recent reduction in transaction pace. The post revealed that out of a total of 530,000 transactions that occurred on the Bitcoin network, an impressive 450,000 were identified as Ordinals transactions.
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.
— Leonidas (@LeonidasNFT) August 20, 2023
Additionally, data from Dune Analytics highlighted a sudden surge in daily Inscriptions following a period of sluggish activity. Specifically, on 20 August, the daily inscriptions skyrocketed to an impressive 411,000, marking one of the highest daily transaction volumes recorded.
This data prompts the question: How does this compare to the total number of transactions on the Bitcoin network, as asserted by Leonidas?
Source: Dune Analytics
Impact of Ordinals on Bitcoin Transactions
Based on data from Blockchain.com, the total count of Bitcoin transactions exceeded 600,000 on 20 August, reaching a figure of 612,461 transactions. Looking at the Dune Analytics chart with this, the total number of Inscriptions observed on the same date surpassed 411,000.
Source: Blockchain.com
Furthermore, this observation pointed to the fact that it contributed to more than half of the transactions that occurred on the Bitcoin network that day. This data underscored the substantial influence of Ordinals.
It also highlighted that its impact on the Bitcoin network remained significant and hasn’t completely diminished. However, it is important to note that this influence doesn’t seem to be mirrored in terms of the fees charged on the network.
Impact on fees reduced
In addition to increasing the transaction volume on the Bitcoin network, Ordinals also introduced transaction fees as another significant aspect. At its peak, Ordinals contributed more than 200 BTC in daily fees, equivalent to approximately $7 million. However, the momentum behind these daily fees subsided, and even the recent surge had minimal impact.
According to the data illustrated in the Dune Analytics chart, the recorded daily fees on 20 August were approximately 3.47 BTC, which equated to around $100,000. On the same day, the total fees across the network, as reported by Crypto Fees, surpassed $390,000. As of this writing, the cumulative fees were now below 1 BTC.
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The influence of Bitcoin Ordinals appears to be diminishing, as evidenced by its decreasing contribution to daily fees. However, it’s important to note that this decline doesn’t signify its demise; rather, it highlights that the impact of Bitcoin Ordinals persists, albeit in a reduced capacity.