Bitcoin Ordinal Inscriptions on the Rise Despite Price Lull
Bitcoin ordinal inscriptions have been steadily increasing this summer, even as the price of bitcoin experienced a lull. According to Dune Analytics, the number of ordinals recorded on the Bitcoin blockchain has surpassed 400,000 three times since July 30, exceeding the previous high of 400,091 in May. In July alone, there were two instances where the number of ordinals exceeded 385,000.
Ordinals are a new protocol that enables the storage and trading of digital content on the Bitcoin blockchain. While similar to NFTs (non-fungible tokens) in concept, there are technical differences. Investors are enthusiastic about the potential of ordinals to bring utility to the Bitcoin network beyond just trading its native token.
Alex Miller, CEO of Hiro, a Bitcoin developer tools company, noted that the number of ordinals being inscribed is steadily increasing. People are eager to put content and inscriptions onto the Bitcoin chain, driving the upward trend. Meanwhile, the price of bitcoin is influenced more by larger macro-level developments.
Ordinals were first launched in February and experienced a significant spike in May, leading to a surge in bitcoin transaction fees. However, given the novelty of the concept, it remains uncertain how adoption will unfold, especially considering the previous hype and uncertainty surrounding NFTs.
Interestingly, the recent increase in ordinal activity coincided with a decline in NFT trading. Bitcoin transaction fee activity has also been relatively subdued in recent weeks. Miller explained that transaction fees spiked earlier this year due to large inscriptions, particularly for the initial setup of BRC-20 coins. However, recent inscriptions have been smaller and more efficient, thanks in part to a technical feature that allows users to save space on the blockchain by referencing existing inscriptions.
These "recursive inscriptions" not only contribute to the art seen today but also enable users to explore different ways to utilize the underlying technology for non-art-based purposes in the future.
In conclusion, while the price of bitcoin may experience fluctuations, the number of ordinal inscriptions on the Bitcoin blockchain has been steadily increasing this summer. The potential utility of ordinals beyond token trading has generated excitement among investors. As the adoption of this new protocol unfolds, it will be interesting to see how it complements and differentiates itself from the world of NFTs.
Conclusion: Potential Impact on New Businesses
The steady rise of Bitcoin ordinal inscriptions, despite the price lull of Bitcoin, offers compelling insights for new businesses, particularly those operating in the digital space. The concept of ordinals, similar to NFTs but with distinct technical differences, opens up new avenues for storing and trading digital content on the Bitcoin blockchain.
For startups and emerging businesses, this development presents an opportunity to leverage this new protocol for various applications beyond just trading Bitcoin's native token. It could potentially revolutionize how digital content is stored, traded, and valued in the blockchain ecosystem.
Moreover, the trend of increasing ordinal inscriptions, despite Bitcoin's price fluctuations, indicates a growing interest in the functional utility of the Bitcoin network. This could encourage businesses to explore innovative ways to utilize this technology, extending its application beyond the financial realm.
However, as with any new technology, the adoption trajectory of ordinals remains uncertain. Businesses must carefully navigate the hype and uncertainty that often accompany such innovations, as seen with NFTs.
In conclusion, the rise of Bitcoin ordinal inscriptions presents both opportunities and challenges for new businesses. As the adoption of this new protocol unfolds, it will be fascinating to see how businesses leverage it to create value and drive innovation in the digital space.