March 27, 2024
Ordinals Surge: Bitcoin's NFT-Like Assets Gain Momentum in Market
Bitcoin News

Ordinals Surge: Bitcoin’s NFT-Like Assets Gain Momentum in Market

The transaction volume for Bitcoin-based assets known as Ordinals has experienced a significant uptick, reaching its highest levels since May. Approximately $14.7 million worth of these assets were traded on Tuesday, according to data from the pseudonymous on-chain data analyst Domo’s Dune dashboard.

Ordinals, which was launched earlier this year, allows the creation of NFT-like assets on the Bitcoin blockchain. It enables individuals to assign data to individual satoshis, representing 1/100,000,000 of a whole Bitcoin, which can include art, profile pictures, or text.

The majority of the trading volume on Tuesday occurred on the cryptocurrency exchange OKX, accounting for 60% of daily Ordinals transactions. OKX had introduced support for Ordinals in May.

Notably, the data does not reflect recent activity on Binance, which initiated support for Ordinals and the first-ever BRC-20 token, ORDI, on Tuesday. As of the latest data available, ORDI’s price surged 124% in the past day to $13.21, more than doubling its initial price on Binance, where $471 million ORDI was traded across all exchanges in the last day, according to CoinGecko.

The surge in interest in Ordinals is attributed to Bitcoin’s recent price climb towards $35,000 and Binance’s support for ORDI. Charlie Spears of Bitcoin mining firm Luxor Technologies emphasized the impact of Binance’s support on Ordinals-related assets, whether they are fungible tokens or JPEGs.

Pioneered by Domo, BRC-20 tokens draw inspiration from Ethereum’s ERC-20 standard, with ORDI as the first token issued as an experiment in March. However, there was some confusion as Binance mistakenly referred to ORDI as “Ordinals” and linked it to the wrong website. Ordinals creator Casey Rodarmor clarified this on Twitter.

This surge in Ordinals transaction volume coincides with a revival in the NFT market, as evidenced by a three-month high in NFT trading volume.

Earlier this year, Ordinals activity raised concerns among Bitcoiners due to rising transaction fees, which have now significantly decreased. Influential NFT firms, including the Bored Ape Yacht Club’s maker, Yuga Labs, have used Ordinals to mint art on the Bitcoin blockchain. With Binance’s support, the momentum for Ordinals and BRC-20 tokens continues to grow, reinforcing the broader Bitcoin NFT ecosystem.

The renewed interest in Ordinals reflects the evolving landscape of NFTs and blockchain-based assets within the crypto industry.

Image: Wallpapers.com

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