Market Analysis Report (15 Feb 2023)

Market Analysis Report (15 Feb 2023)

Source Node: 1959968

The number of Ordinal inscriptions on the Bitcoin (BTC) network has surpassed 100,000, a milestone that comes less than a day after Ordinals crossed the 75,000 inscription mark. Transaction fees for these NFTs have topped $114,000.

The NFTs have seen the memory usage per BTC block exceed the standard 300 MB capacity by 86 MB, leading to a purge of any transaction of less than 1.74 satoshis per byte as network congestion slowly grows.

Ordinals is a protocol that assigns a unique and non-fungible number to each satoshi, the smallest denomination of a Bitcoin, allowing users to attach data such as images, smart contracts, and more to Bitcoin transactions.

The Taproot soft fork in November 2021 enabled the technological applications of the Ordinal protocol, which launched Bitcoin Ordinals on January 21.

Although the popularity of Ordinals has surged, the protocol is still in its nascent stage and lacks features necessary for long-term growth, such as more efficient methods to inscribe new Ordinals without synchronizing the entire blockchain and marketplaces to facilitate trade.

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