July 23, 2024
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Bitcoin News

Bitcoin Ordinal Inscription Resurgence Sees New All-Time High

Glassnode, an on-chain analytics company, published a research on the Bitcoin ordinal inscription ecosystem on April 25. It stated that the daily inscription transaction count had sharply increased after a brief fall in inscription consumption. As a result, on April 23, it produced an all-time high of 193,000 Inscriptions in a single day.

On that particular day, an inscription file was connected to over 40% of all Bitcoin transactions, the report said. The following day, which was the third-highest day on record, witnessed about 85,000 inscriptions.

Additionally, text inscriptions made up the great majority of the Bitcoin ordinal inscriptions on a record-breaking day. Transactions still primarily include this, as opposed to the earlier popularity of image inscriptions.

Glassnode saw a decrease in the percentage of total block size attributed to inscriptions.

Inscriptions, and 56% of them have been text. Text-based inscriptions have grown in prominence because their data footprint is far lower than their image counterparts. With about 40%, image inscriptions held the second-largest percentage. The remaining files were video, HTML, PDF, and JSON.   

However, according to Dune Analytics, there were 1.73 million total inscriptions, of which more than a million were plain text. Additionally, it said that 184 BTC, or almost $5 million, had been paid in total for ordinal inscription fees to date.

Bitcoin ordinal inscriptions resemble nonfungible tokens (NFTs), which are digital assets. One Satoshi, the tiniest unit of value in Bitcoin, can contain them. Additionally, the inscribing procedure adds more content-related data to the “witness” of the Bitcoin transaction. The witness was first made available in the 2017 SegWit upgrade.

Ordinal users were formerly limited to 1MB of data per block. However, SegWit and the Taproot update allowed them to add 3MB of data to each block. When users started inscribing their NFTs to satoshis in February, the Bitcoin ordinal writing frenzy took hold.

The cost of Bitcoin has increased by 4% today. As a result, BeInCrypto reports that the asset was trading for $28,346 at the time of writing.

Another American bank being in difficulties may have prompted the action. Following a deposit outflow on April 25, First Republic Bank’s stock lost half of its value.