Approximately 65 million Bitcoin Ordinal inscriptions have been added to the network, just ahead of the upcoming Bitcoin halving event, which is scheduled to occur in eight days.
According to Dune’s data, the number of ordinal inscriptions passed the 65 million milestone on April 11, which is only about a year and three months after their launch in January 2023.
On Bitcoin, the pioneering blockchain, ordinals represent an early form of non-fungible tokens (NFTs). Unlike many current NFT collections that keep their metadata on centralized servers, increasing potential risks, ordinals exist solely within the Bitcoin network.
Before the Bitcoin reward reduction, scheduled around April 19 (Bitcoin halving), a significant achievement is approaching – a milestone. This event will decrease the number of new Bitcoins issued with each block from 6.25 to 3.125.
So far, Ordinals have paid out approximately $458 million in network fees to Bitcoin miners, as reported by Dune. This is an essential source of revenue for mining companies, given the impending reduction in block rewards.
Ordinals signal demand for BTCFi
According to Mithil Thakore, CEO of Velar, the surpassing of 65 million in total Bitcoin transactions signifies the growing appetite for block space and underscores the necessity for more Bitcoin layer-2 (L2) networks, as reported by CryptoMoon.
“As ordinals become more prevalent, the need for utility around them through lending, derivatives markets, becomes evident. This trend will likely drive the rise of Bitcoin L2s, offering the programmability needed to support smart contracts to bring these ordinals as well as BTC to DeFi. It’s an exciting time for the Bitcoin ecosystem as we witness its evolution and expansion into new realms of functionality.”
BTCFi represents a fresh approach that intends to extend Decentralized Finance (DeFi) functionalities to the Bitcoin blockchain.
Assuming the current rate of acceptance stays consistent, BTCFi could bring about innovations comparable to those in Ethereum‘s Decentralized Finance scene, as suggested by Nash Lee, a co-founder at MerlinSwap.)
“[Market appetite] is seeking expansive platforms capable of accommodating the surging volumes and expectations. DeFi stands out as the only sector with the potential to leverage this narrative, providing a sustainable ecosystem for Bitcoin’s evolving use cases. This dynamic sets the stage for Bitcoin DeFi to potentially match, if not exceed, the innovation and complexity seen in Ethereum’s DeFi ecosystem.”
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2024-04-11 10:32