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- 1 The latest data shows that the fees generated from Bitcoin Ordinals have crashed.
- 2 The world’s most valuable network has crashed from $95,000 to $72000, a 24% drop.
Bitcoin Ordinals’ fees have plummeted a lot, and the general performance of this BTC price has been under pressure in the last two weeks. The price crashed last week and forced the coin towards $25,000 looking at price action in the daily chart.
The crypto market has faced intense selling pressure for the last few days. The current data shows that there is a noticeable fall in the activity. This fall is creating a jittery and nervous crypto market. The investors are looking immensely nervous. Bitcoin is lagging behind.
Recent Analytics of Bitcoin
Dune Analytics which shows the data of on-chain activity of various blockchains shows that Bitcoin has ordinals stood at $45,886 on August 22, 2023, which was down from $97,272 on August 20, 2023.
This is a notable drop in activity and fees after an increased strengthening which saw Bitcoin Ordinals activity flatline as BTC prices also moved horizontally for the better part of early August 2023.
The fall in the price of Bitcoin seems to affect the ordinal minting. Affected by the price change of BTC, how the number of Ordinals will be minted going forward is yet to be seen. Looking at the data of August 22, 2023, it shows that nearly 26 Million inscriptions were minted, generating over $50 Million in fees for Bitcoin miners.
Commonly, the Ordinals protocol allows the user to inscribe the items which also consist of images and texts to the Satoshi which is the smallest unit of BTC. Miners have work to mine to verify these blocks and performing this process they get the fees. Bitcoin depends on a Proof-of-Work mechanism where miners are tasked with decentralization and security.
These miners are responsible for ensuring the safety of inscribed items. The network will be more secure if the blocks are full and miners can earn more by mining and competing for the rewards. Besides blaming the bloating blocks and unnecessarily increasing fees, Bitcoin Ordinals confirm that blocks are full. In this way it gives a chance to miners to earn high fees.
The Dune Analytics’ data shows that the inscribed data is mainly text. Mostly, the lighter the data the less will its fees. More fees are charged for big-size inscriptions as they make data heavy. In that case, users have to pay more.
Once there is a change, Bitcoin blocks will become faster. Those who want to change the data to add to the next block by miners will have to pay more transaction fees.
Summary
The price of Bitcoin has gone downwards over the recent days. This reduction in the price may affect the crypto market cap negatively. The total generated fees from Bitcoin Ordinals are dipping.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
