Bitcoin Network Surpasses 65 Million Ordinals Registrations Ahead of Halving Event
Summary:
The Bitcoin network has exceeded 65 million Ordinals registrations just before the impending Bitcoin halving event. Ordinals, the inaugural non-fungible tokens exclusively existing on the Bitcoin blockchain, have already generated over $458 million in network fees for Bitcoin miners. This milestone demonstrates a growing demand for block space on Bitcoin, leading to the expected rise of Bitcoin L2 networks. Experts also predict the potential of Bitcoin decentralized finance to match or outdo the ongoing innovation in Ethereum-based DeFi.
The Bitcoin network recently exceeded 65 million Ordinals registrations, a significant development just eight days ahead of the much-anticipated Bitcoin halving event. On April 11, there were more than 65 million Ordinals registrations, marking an impressive growth since they were launched in January 2023, as per data from Dune.
Ordinals, as the inaugural non-fungible tokens (NFTs) on the Bitcoin network, are unique in that they exclusively exist on the Bitcoin blockchain. This distinguishes them from many popular NFT collections today that store their metadata on centralized servers, thereby posing additional potential points of risk.
This achievement comes just before the Bitcoin halving event around April 19, which will slash the rewards for block issuance from 6.25 BTC to 3.125 BTC. As per Dune’s data, Ordinals have already generated over $458 million in network fees for Bitcoin miners, signifying a crucial source of income for mining companies as they face an imminent reduction in block rewards.
With the Ordinals surpassing the 65 million registrations mark, it signifies a growing demand for block space on Bitcoin and points to the importance of developing additional Bitcoin layer-2 (L2) networks. Mithil Thakore, CEO of Velar, noted that as Ordinals gain popularity, the demand for utility concerning them through lending and the derivatives market becomes clear, and he forecasted the rise of Bitcoin L2s in response.
The present trend also hints at the potential of Bitcoin decentralized finance (BTCFi) to match or even outdo the innovation seen in Ethereum-based DeFi, should the existing adoption pace be maintained. For Nash Lee, co-founder of MerlinSwap, the focus is on platforms that can accommodate escalating volumes and expectations, with DeFi being the sole sector capable of capitalizing on this approach while offering a sustainable ecosystem for evolving Bitcoin use-cases. This situation paves the way for BTCFi’s potential to reach or surpass the level of innovation and complexity observed in Ethereum’s DeFi ecosystem.
Published At
4/11/2024 10:31:38 AM
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