- Ordinals inscriptions have surpassed 411,000.
- Its contribution to transaction fees over the past week has also exceeded 6%.
Ordinals and other Layer 2 solutions have made the Bitcoin network no longer only used for BTC transactions. Even though Ordinals has been met with mixed reactions from the Bitcoin community, its growing popularity and potential effects on the Bitcoin network could be a game changer for BTC miners.
Read Bitcoin (BTC) Price Prediction 2023-24
And the Ordinals fever goes on
As far as we can tell, the Ordinals craze shows no signs of slowing down. The fact that established NFT firms like Yuga Labs have entered the market with products like TwelveFold is evidence of the technology’s growing ubiquity.
The entrance of new players has led to an ever-increasing number of Ordinals inscriptions, which, at the time of this writing, stood at 411,541.
Ordinals bring positives to Bitcoin transaction fees
The overall fees have increased as the number of Ordinals inscriptions has grown. There had already been almost $1.5 million in fees collected as of this writing, and that number would only rise as more inscriptions were completed.
Dune and Messari’s data shows that introducing Ordinals has impacted Bitcoin network transaction fees. Inscriptions have made about $1.6 million in fees for miners over the past three months.
Over 6% of all trade fees in the past seven days have been associated with inscriptions.
Source: DuneAnalytics
These costs are expected to rise as Ordinals inscriptions become more common and compete for available block space, allowing miners to make more money.
Eventually, this will be more vital than ever. Miners will have to rely on transaction fees to ensure the continued security of the Bitcoin network as the block reward dwindles to zero.
The current state of Bitcoin BTC miners’ revenue
According to the transaction fee data on blockchain.com, the total Bitcoin transaction costs were more than $579,000.
However, a deeper examination of the chart revealed that the network’s transaction fees had decreased over time.
The consequence is that miners’ revenue will fall as well. Furthermore, miners’ incentives will reduce even further if future halving events occur, increasing their dependency on transaction fees.
Source: blockchain.com
Is your portfolio green? Check out the Bitcoin Profit Calculator
The prospect of Bitcoin Ordinals
No matter where you stand on the issue of Ordinals, the fact remains that its steady expansion will ultimately result in more fees being contributed to the Bitcoin network.
Further fees ensure miners will make money, encouraging them to continue protecting the network. However, how far Ordinals can develop is still an open question. In addition, the advent of Ordinals may open the door for other NFT projects on the network.