May 25, 2024
Bitcoin Hits 65 Million Ordinals Inscriptions Milestone Ahead of Halving
Bitcoin Halving

Bitcoin Hits 65 Million Ordinals Inscriptions Milestone Ahead of Halving

The Bitcoin network has achieved a significant milestone just days before the much-anticipated Bitcoin halving, with over 65 million Ordinals inscriptions recorded. This landmark was reached on April 11, less than a year and three months after their inception in January 2023, according to data from Dune.

Source: Dune

Ordinals: Pioneering NFTs on Bitcoin Blockchain

Ordinals represent the first iteration of nonfungible tokens (NFTs) on the Bitcoin blockchain, distinguishing themselves by residing solely within the Bitcoin network. Unlike many existing NFT collections, Ordinals do not rely on centralized servers for hosting metadata, thereby reducing vulnerabilities.

Boost for Bitcoin Miners Ahead of Halving

The timing of this achievement holds particular significance as Bitcoin approaches its halving event, scheduled for on or around April 19. With block rewards set to be reduced from 6.25 BTC to 3.125 BTC, Ordinals have emerged as a crucial source of income for Bitcoin miners, generating over $458 million worth of network fees to date, as reported by Dune.

Rising Demand Signals Need for Bitcoin Layer-2 Networks

The 65 million Ordinals milestone underscores the escalating demand for block space on the Bitcoin network. Mithil Thakore, CEO of Velar, emphasizes the necessity for additional Bitcoin layer-2 networks to accommodate this surge in demand. Thakore highlights the potential for the rise of Bitcoin L2s, which offer programmability required to support smart contracts, thus facilitating the integration of Ordinals and BTC into decentralized finance (DeFi).

The Emergence of BTCFi: Bitcoin Decentralized Finance

BTCFi, short for Bitcoin decentralized finance, represents a new paradigm aimed at bringing DeFi capabilities to the Bitcoin network. Nash Lee, co-founder of MerlinSwap, envisions BTCFi matching, if not exceeding, the innovation and complexity witnessed in Ethereum-based DeFi ecosystems. Lee underscores the market’s demand for versatile platforms that can handle growing volumes and expectations, highlighting DeFi as a stable ecosystem for Bitcoin’s evolving applications.

Conclusion 

As Bitcoin continues to evolve and expand into new realms of functionality, the convergence of Ordinals and DeFi heralds an exciting chapter in the cryptocurrency ecosystem’s development.

Image by freepik

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