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Ordinals Continue to Dominate the Vast Majority of Bitcoin Transactions, Despite Large Price Drop

Despite the price decline, Ordinals NFTs dominate with 84.9% of Bitcoin's activity, recording strong footing in a shifting market landscape

Shashank Bhardwaj
Published: Aug 22, 2023 03:20:08 PM IST
Updated: Aug 22, 2023 03:40:40 PM IST

Ordinals Continue to Dominate the Vast Majority of Bitcoin Transactions, Despite Large Price DropImage: Shutterstock

In a notable development within the realm of Bitcoin and its associated Non-Fungible Tokens (NFTs), the prevailing dominance of Ordinal inscriptions on the Bitcoin network stands out despite recent price swings and discussions around the fading allure of Bitcoin NFTs. 

On August 21, Ordinals developer "Leonidas" underscored a surprising fact: Out of the 530,788 Bitcoin transactions conducted in the previous 24 hours, a substantial 450,785 of them were tied directly to Ordinals. This revelation challenges notions of the Ordinals' diminishing importance and highlights their commanding presence, constituting a noteworthy 84.9% of the Bitcoin network's total activity.

Backing up this assertion, insights from Dune Analytics further confirm the sustained significance of Ordinal inscriptions. The data showcases that a remarkable 400,000 ordinal inscriptions were recorded on August 20 alone. In parallel, Bitinfocharts reported approximately 556,000 daily Bitcoin transactions on the same day, indicating that over 75% of the network's operational activity revolved around Ordinals.

Esteemed industry researcher Eric Wall put further weight on these findings by pointing out that over the course of the week, a substantial 54% of Bitcoin network transactions were directly linked to Ordinals. Dune Analytics' data revealed that the cumulative count of Ordinal inscriptions had reached 25.5 million, generating $53.4 million in fees for the Bitcoin network.

In contrast, a different perspective surfaced from a DappRadar report published on August 17. This report posited a decline in the utilisation and sales volume of Ordinals NFTs since their zenith popularity in May. 

However, it's crucial to note that this report primarily analysed the sales and trading volume of NFTs minted on the Bitcoin network rather than the actual volume of inscription activity. In light of this distinction, the vigour of Ordinal inscriptions remains undiminished.

Having emerged with the launch of the protocol in January, the Ordinals gained momentum in subsequent months, causing network congestion and spikes in transaction fees, particularly during the apex of activity in April and May. This enduring prominence in an ever-shifting market underscores the dynamic nature of the crypto landscape, where certain elements manage to maintain their influence even amidst broader market turbulence.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash