Huge Shift For Bitcoin Miners With Rise Of Ordinals, On-Chain Data Suggests
Bitcoin Ordinals: While the Bitcoin halving is considered the biggest event in the cryptocurrency’s life cycle, the onset of Bitcoin based NFTs could potentially go on to become the next biggest development. Primarily, Bitcoin was so far seen as a layer 1 blockchain with its use case being peer to peer transactions. With the coming of Non Fungible Tokens (NFTs) on Bitcoin layer itself, there could be a paradigm shift in the way miners operate, going forward. On chain data shows that the mean miner transaction fee per block rose in parallel with the adoption of Ordinals.
Also Read: Polygon (MATIC) Set To Reach New Record, Bullish Ahead Of zkEVM?
As a layer 1 blockchain, Bitcoin had the distinction of maintaining a standard peer to peer network. However, the blockchain network was deprived of use cases like NFT support. Hence, considering its reliability and stability as a regulator-friendly blockchain, Bitcoin adds more meaning to the Ordinals project. The adoption is clearly seen as miners rake gains from increased transaction fees thanks to the NFT activity on chain.
Bitcoin NFTs With Ordinal Theory
The Ordinals project rose to prominence as NFT transactions on Bitcoin network does not require a separate blockchain layer or changes to the Bitcoin network. For the purpose of store of value, these transactions also do not go with any other cryptocurrency but Bitcoin itself. The protocol was powered by two soft fork upgrades — Segregated Witness and Taproot.
As per Crypto Quant data, a clear rise in Bitcoin block size and miner fees per transaction was clearly affected by the use of Ordinals NFTs. Overall, there is growing interest in the Bitcoin NFTs.
Also Read: Will Bitcoin Price Rally Above Key 200-WMA Level? Or It’s A “Bull Trap”
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role
- Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms
- Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
