Ordinal inscriptions continue to dominate the Bitcoin network despite the recent decline in its price and the speculation that the hype around Bitcoin NFTs has died down. On August 21, developer “Leonidas” pointed out that there were 530,788 transactions on the Bitcoin network in the past 24 hours, with 450,785 of those transactions being Ordinals related. This means that Ordinals accounted for 84.9% of the activity on Bitcoin, despite claims that they are dead.
Data from Dune Analytics supports this trend, reporting that there were over 400,000 ordinal inscriptions on August 20. Bitinfocharts also reports a daily Bitcoin transaction count of around 556,000, indicating that more than three-quarters of the current network activity is Ordinals related.
Industry researcher Eric Wall added to this, observing that over the week, 54% of the transactions on the Bitcoin network were Ordinals. According to Dune, there have been 25.5 million Ordinal inscriptions, generating $53.4 million in fees on the Bitcoin network. The majority of these inscriptions are BRC-20 token minting, with 1.9 million of them minted last week.
These recent observations contradict a DappRadar report on August 17, which claimed that Ordinals NFT usage and sales volume had significantly dropped since peaking in May. However, it is important to note that the report tracked the sales and trading volume of NFTs minted on the Bitcoin network, not the actual inscription activity. Despite the decline in NFT trading volume, the inscription activity on the Bitcoin network remains high.
Bitcoin Ordinals are nonfungible asset artifacts that allow data to be inscribed onto a Satoshi, the smallest division of a Bitcoin. The protocol was launched in January, and in the following months, the hype around inscriptions grew as thousands of them were minted on the Bitcoin network. This led to congestion and spikes in transaction fees, reaching a peak in April and May.
Overall, while the hype around Bitcoin NFTs may have subsided, the activity and use of Ordinal inscriptions on the Bitcoin network remain strong. The dominance of Ordinals in network activity showcases their continued relevance and popularity in the cryptocurrency ecosystem.