Ordinal inscriptions on the Bitcoin blockchain have been gaining significant traction recently, with over 500,000 inscriptions recorded to date. This technology enables people to embed any type of arbitrary data, including text, images, audio, video, and applications, into the blockchain. According to onchain data, Bitcoin miners have gained 98 bitcoins worth $2.66 million in fees since inscriptions started gaining popularity last month.
Dune Analytics data shows that 31.1% of inscriptions are in PNG format, while roughly 14% are in WEBP format, and around 7% are in JPEG format. Text-based inscriptions account for more than 40% of all Ordinal inscriptions, totaling 212,827. Ordinal inscriptions have been widely used for art collections, with Yuga Labs selling its Twelvefold collection for $16.6 million, and projects like Bitcoin Punks and Ordinal Punks generating sales of 454.9 BTC and 225.5 BTC, respectively.
The trend of Ordinal inscriptions on Bitcoin continues to gain momentum, and Galaxy Digital recently published a report that forecasts a $4.5 billion market for Bitcoin-based non-fungible token (NFT) assets using Ordinal inscription technology by 2025. In addition to the Bitcoin blockchain, there are also 213,583 LTC-based Ordinal inscriptions on the Litecoin network today, with collections like Litecoin Punks, Litecoin Bulls, and Ordinal Doges.
As the market for Ordinal inscriptions and NFTs continues to grow, many in the industry are excited about the potential applications of this technology. However, it is worth noting that this trend is not without its challenges. For example, the blockchain’s finite storage capacity means that as more inscriptions are added, it becomes more difficult and more expensive to verify transactions.
Despite these challenges, the potential of Ordinal inscriptions on the blockchain is significant. Not only has it opened up new avenues for digital art, but it has also expanded the range of data that can be recorded on the blockchain beyond just financial transactions. This has led some experts to predict that this technology could have far-reaching implications for various industries, including supply-chain management, identity verification, and voting.
In conclusion, the trend of Ordinal inscriptions on the blockchain shows no signs of slowing down. It has already proven to be a valuable tool for artists and collectors, and with the advent of new use cases, it is likely to become increasingly relevant in the years to come. As with any emerging technology, however, it is important to approach it with caution and to be aware of the potential challenges and limitations it presents.
