The Decline of Bitcoin’s Ordinal Inscription Trend
Since September 25, 2023, there has been a discernible ebbing of the trend surrounding Bitcoin-based Ordinal inscriptions. This decline has reached its lowest point since mid-April, and it was particularly pronounced on October 3 and 4 when fewer than 17,000 inscriptions were added to Bitcoin’s distributed ledger. Both the volume of inscriptions and the associated fees have exhibited a notable drop.
With a substantial repository of over 35 million Ordinal inscriptions now recorded, the surge in inscriptions that had captivated observers is displaying signs of deceleration. The cooling down of this inscription phenomenon was first highlighted by CryptokenTop.com News last week and has since persisted. The daily rate of Ordinal inscriptions has returned to levels reminiscent of those witnessed before April 20, 2023, when a mere 8,844 inscriptions were etched into the Bitcoin blockchain on that particular day.
Following that pivotal day in April, inscriptions witnessed an exponential surge. In a remarkably short span from April 21, the count soared from 1.24 million to an astounding 4.5 million inscriptions by May 7, 2023. May 7th itself saw an impressive tally of 400,091 inscriptions recorded within a 24-hour window. This fervent pace persisted throughout the summer months, reaching its zenith on September 15 with a daily rate of 440,760 inscriptions.
However, from September 15, 2023, to October 8, 2023, there has been a significant decline in the number of daily Ordinal inscriptions.
Remarkably, just ten days later, the landscape underwent a dramatic transformation. Furthermore, inscribers are now paying fewer fees to miners. Presently, miners have garnered approximately 2,120.92 BTC, equivalent to around $59 million, from processing inscription transactions. Delving deeper, a majority of these inscriptions (52.6%) fall under the category of “text/plain; charset=UTF-8,” totaling around 18.54 million.
Following closely, 42.4% are labeled as “text/plain,” accounting for approximately 14.93 million inscriptions. Other noteworthy categories include 757,950 inscriptions of the “PNG” image type, 313,962 of the “JSON” variant, 228,210 in the “WEBP” format, and 131,025 marked with the “SVG” tag. This deceleration in inscriptions has provided some respite for Bitcoin miners, enabling them to address the substantial backlog of transactions accumulated over the previous five months.
Ordinal inscription sales have experienced a significant downturn, with a pronounced decline in sales since the end of June. Data from cryptoslam.io reveals a shift in Bitcoin’s standing, now occupying the eighth position in the non-fungible token (NFT) or Ordinal sales domain. Over the past week, Bitcoin-centric NFT sales amounted to $926,023, marking a substantial 58% decrease compared to the previous week.
However, there is a silver lining. The BRC20 token market has seen a modest uptick of approximately 3% this week, reaching a value of $180.31 million. Nevertheless, the majority of BRC20s have witnessed a 0.6% decrease in value over the last 24 hours. Among them, the ORDI token boasts the highest market capitalization at $71 million, followed by DFUK at $46 million, and MOON securing the third spot with $23 million. It’s worth noting, though, that ORDI has declined by 87.81% from its peak on May 08, 2023, while MOON has dipped by 71.20%. In the last day, BRC20 tokens have seen approximately $9.2 million in global trading activity.
We invite you to share your insights and opinions on this decline in Ordinal inscriptions in the comments section below.
Frequently Asked Questions (FAQs) about Cryptocurrency Trends
What is the significance of the decline in Ordinal inscriptions for Bitcoin?
The decline in Ordinal inscriptions for Bitcoin suggests a potential slowdown in blockchain activity, which can impact various aspects of the cryptocurrency ecosystem.
How significant is the drop in daily Ordinal inscriptions?
The drop is substantial, returning to levels last seen before April 20, 2023, indicating a notable cooling down of inscription activity.
How are miners affected by this decline?
Miners are receiving fewer fees for processing inscription transactions, impacting their earnings, which have amounted to approximately $59 million so far.
What is the current composition of Ordinal inscriptions by type?
The majority (52.6%) are “text/plain; charset=UTF-8,” followed by 42.4% labeled as “text/plain,” with various other types making up the remainder.
How has this affected Bitcoin’s standing in the NFT market?
Bitcoin has dropped to the eighth position in NFT (Ordinal) sales, with a significant 58% decrease in sales over the past week.
Is there any positive news amidst this decline?
Yes, the BRC20 token market has seen a modest uptick of about 3% this week, reaching a value of $180.31 million.
Which BRC20 tokens have the highest market capitalization?
ORDI leads with $71 million, followed by DFUK at $46 million and MOON with $23 million. However, ORDI and MOON have seen substantial declines from their peak values.
What has been the recent trading activity for BRC20 tokens?
In the last day, BRC20 tokens have seen approximately $9.2 million in global trading activity.
What are the implications of this decline in Ordinal inscriptions for the broader cryptocurrency market?
The decline may indicate shifts in investor sentiment and behavior within the cryptocurrency space, warranting further monitoring and analysis.
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