Bitcoin: Why Ordinals and Inscriptions attracted new addresses

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  • Bit­coin saw a surge in activ­i­ty brought on by Inscrip­tions’ and Ordi­nals’ popularity.
  • Min­er rev­enue could see a boost due to increased activ­i­ty; how­ev­er, ris­ing dif­fi­cul­ty posed a challenge.

Bit­coin [BTC] has been expe­ri­enc­ing sig­nif­i­cant volatil­i­ty over the past few months, with its price fluc­tu­at­ing between $25,000 and $30,000. This volatil­i­ty has under­stand­ably made many risk-averse investors cautious.

Amidst this uncer­tain­ty, there has been a notable increase in activ­i­ty on the Bit­coin net­work, rais­ing ques­tions about the poten­tial impli­ca­tions for the king coin.

Have Ordinals played a significant role?

The spike in net­work activ­i­ty could be attrib­uted, in part, to the grow­ing pop­u­lar­i­ty of Inscrip­tions and Ordi­nals. These devel­op­ments have facil­i­tat­ed the inte­gra­tion of NFTs on the Bit­coin network. 

While the ini­tial hype around Bit­coin NFTs may have sub­sided, recent indi­ca­tions sug­gest­ed a renewed inter­est in these dig­i­tal assets. The resur­gence of inter­est in NFTs like­ly con­tributed to the increased net­work activ­i­ty, as users explored the poten­tial of NFTs on the Bit­coin blockchain.

Source: Dune Analytics

Impact on miners

The height­ened net­work activ­i­ty is expect­ed to ben­e­fit min­er rev­enue, which expe­ri­enced a decline over the past month. Wan­ing min­er rev­enue usu­al­ly cre­ates sell­ing pres­sure on Bitcoin.

How­ev­er, the increased net­work activ­i­ty and trans­ac­tion fees might off­set this trend by pro­vid­ing min­ers with improved rev­enue streams.

Source: Blockchain.com

Regard­less, the ris­ing dif­fi­cul­ty of Bit­coin min­ing could pose a threat to the min­ers. When the min­ing dif­fi­cul­ty increas­es, min­ers face sev­er­al neg­a­tive impacts. They may receive reduced rewards due to low­er min­ing suc­cess rates, lead­ing to decreased profitability.

Addi­tion­al­ly, high­er dif­fi­cul­ty requires more com­pu­ta­tion­al pow­er and ener­gy con­sump­tion, result­ing in increased oper­a­tional costs. The ris­ing dif­fi­cul­ty also attracts more min­ers, inten­si­fy­ing com­pe­ti­tion and reduc­ing indi­vid­ual chances of earn­ing rewards.

Source: Blockchain.com


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As of press time, BTC was trad­ing at $27,088, with its price and trad­ing vol­ume hav­ing dis­played sig­nif­i­cant volatil­i­ty over the past month. Despite the mar­ket fluc­tu­a­tions, the Open Inter­est for Bit­coin indi­cat­ed that traders remained will­ing to make bets on BTC’s future.

The sus­tained lev­el of Open Inter­est sug­gest­ed that traders were not deterred by the high volatil­i­ty but viewed it as an oppor­tu­ni­ty for poten­tial gains.

Source: San­ti­ment

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