18 Months of Ordinal: Exploring Its Impact on Bitcoin
In the 18 months since the Ordinal protocol was introduced, Bitcoin’s network has become the third largest in terms of the volume of digital objects (images, audio, video files and quasi-tokens). Currently, their combined value is $4.3 billion.
Let’s examine what is popular and how it impacts the price.
Quasi-tokens are the most in-demand: initially, BRC-20 standard coins were leading, but after the halving, they were overtaken by Runes. This category is 99.9% comprised of memecoins, whose creation and trading are driven by speculative interests.
In the realm of NFT collections, NodeMonkes holds the top position with a value of $238 million. For comparison, Ethereum’s leading collection, Bored Ape Yacht Club, totals $3.2 billion.
Bitcoin has quickly risen to third place, but further growth is hampered by low throughput. When interest in digital artefacts increases, transaction fees also rise.
Record interest in quasi-tokens was observed on 20 April, following the activation of the Runes protocol and the halving event. Runes accounted for 73.5% of all transactions that day and the average fee soared to a record $128.
However, the circulation of digital artefacts has not affected Bitcoin’s value. Many users have a negative view of quasi-tokens, as they drive up costs without providing substantial benefits.
Miners, on the other hand, have a different perspective. On 20 April, despite halving of the mining reward, they earned a record $108 million.
Cryptocurrencies involve complexity and carry a high risk of rapid monetary loss due to volatility and changing regulatory landscape. It’s crucial to ensure you understand how cryptocurrencies operate and can withstand the potential high-risk scenario of losing your assets.
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