Key Points
- The Bitcoin network surpasses 65 million Ordinals inscriptions ahead of the anticipated Bitcoin halving.
- Ordinals, the first nonfungible tokens (NFTs) on Bitcoin, have generated over $458 million in network fees for Bitcoin miners.
The Bitcoin network has achieved a significant milestone, exceeding 65 million Ordinals inscriptions, just ahead of the much-anticipated Bitcoin halving.
The 65 million mark was surpassed on April 11, a little over a year since the launch of Ordinals in January 2023, as per data from Dune.
Ordinals and Bitcoin
Ordinals represent the first batch of nonfungible tokens (NFTs) on the Bitcoin network, the pioneering blockchain network. Unlike most popular NFT collections today, Ordinals exist exclusively on the Bitcoin blockchain, eliminating the need for centralized servers and reducing vulnerability points.
This achievement comes on the eve of the Bitcoin halving, which is expected around April 19, and will cut block rewards from 6.25 Bitcoin (BTC) to 3.125 BTC.
Ordinals have so far generated over $458 million in network fees for Bitcoin miners, a significant source of revenue for mining companies as the halving nears.
The Rise of Bitcoin Decentralized Finance (BTCFi)
The 65 million milestone highlights the growing demand for block space on Bitcoin and the need for additional Bitcoin layer-2 networks. As Ordinals become more common, the requirement for utility around them through lending and derivatives markets becomes apparent.
This trend is likely to spur the growth of Bitcoin layer-2 networks, providing the necessary programmability to support smart contracts and bring Ordinals as well as BTC to decentralized finance (DeFi).
BTCFi, a new concept aiming to bring DeFi capabilities to the Bitcoin network, could match the innovation of Ethereum-based DeFi in the future, given the current adoption rate.
The market is seeking expansive platforms that can handle the increasing volumes and expectations. DeFi emerges as the only sector with the potential to leverage this narrative, offering a sustainable ecosystem for Bitcoin’s evolving use cases. This sets the stage for Bitcoin DeFi to potentially match, if not exceed, the innovation and complexity seen in Ethereum’s DeFi ecosystem.
