The ordinals have sparked a frenzy in memecoins and NFTs on the bitcoin network, with mining revenue riding high.
The explosive popularity of memecoin and non-fungible tokens (nft) on bitcoin (B T c) network has driven an increase in mining revenue. However, how long this positive development will last remains to be seen. Memecoin had a market capitalization of around $1 billion at the beginning of May, but according to data from BRC-20.io, it is currently down to $582 million.
The Rise Of Meme Coins And NFTs On The Bitcoin Blockchain Is Mainly Due To The Growing Popularity Of Bitcoin ordinals, Launched earlier this year, the software positively increases miner earnings on digital assets. Nearly 25,000 meme tokens have been registered on bitcoin’s blockchain since the Ordinals’ inception. Meanwhile, blockchain investment management firm Galaxy Digital Holdings Limited Predicted that bitcoin’s NFT ecosystem could grow to $4.5 billion in two years.
Since coming on the scene, Ordinals has inspired Memecoin and NFT minting on the bitcoin blockchain.
At the height of ordinal-triggered record transactions and sky-high revenues in May, transaction fees from Memecoin constituted more than 40% of bitcoin mining revenue. On this development, Jihan Wu, President of Bitdeer Technologies Group, commented, “The Ordinals Protocol has induced a seismic shift in the bitcoin mining landscape.” Meanwhile, Messari research analyst Sami Kasab explores the potential use cases that have been brought to the BTC network. Stating that the incident affected the operational dynamics in the network of Kasab, the world’s foremost digital currency Said,
“While the memecoin frenzy over bitcoin will eventually subside, valuable use cases will emerge from the chaos, such as using bitcoin as a data availability layer and storing important documents that require permanent preservation.”
Bitcoin mining margins declined last year due to a bearish market and high energy costs. However, the ongoing crypto rebound and ordinals have helped recover some of these losses for miners.
Despite the obvious advantages of ordinals, some critics say that the Satoshi numbering system stifles the bitcoin protocol. Furthermore, these critics, mainly bitcoin purists, also argue that ordinals interfere with bitcoin’s store-of-value and payment functions.
Nonetheless, a sustained bitcoin mining transaction income increase could keep miners busy and provide the network with more staying power. Furthermore, the Ordinals event appears to have renewed investor enthusiasm for BTC miners, with a statement from Luxor Technologies’ Colin Harper underlining this notion. According to the head of content and research at the crypto mining service provider, the Ordinals application is “completely rewriting how people think about mining profitability.”
ordinals
Launched in January this year by developer Casey Rodarmore, the Bitcoin Ordinals Protocol lets users write digital content in satoshis. These include videos, images and text stating that a satoshi is the smallest unit of bitcoin. There are 100 million satoshis in 1 bitcoin.
Following the innovation of Rodarmor, the pseudonymous blockchain analyst, Domo developed the Bitcoin Request for Comment (BRC20) standard, which led to the memecoin explosion.
Prior to the emergence of Ordinals, NFT minting and usage took place on other blockchains, such as Ethereum, solanaAnd bnb Smart Chain.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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