“BRC-20” registrations, which use the Ordinals protocol on Bitcoin, have been snapped up in recent weeks. And despite the recent fall in their price, they continue to attract investor interest. In fact, they have doubled since last week.
Ordinary Bitcoin registrations continue to explode
Until now, it’s been image registrations on the Bitcoin blockchain that have generated the most excitement. But the trend has changed since the creation of a new standard, called BRC-20. Inspired by Ethereum’s ERC-20, it allows text to be written using the Ordinals protocol… and therefore to create tokens.
According to Glassnode co-founder Rafael Schultze-Kraft, who shared an analysis over the last few days, these entries are now the majority on the network:
6/ Jpegs are yesterday’s news: the rise of Taproot transactions can be attributed to the heavy increase of text inscriptions.
Up to more than 50% of all transactions in the Bitcoin network were associated with inscriptions using text.
Dashboard: https://t.co/YKwAbthEXL pic.twitter.com/x0fo8bBJwl
– Rafael Schultze-Kraft (@n3ocortex) May 4, 2023
“More than 50% of transactions on the Bitcoin network are associated with text-based entries “
This craze has been particularly visible over the last month: text-based listings have exploded, to completely overwhelm other types of listings:
The revolution is no longer based on “pseudo-NFTs”, but on a new kind of token
Nearly 5 million registrations since last February
As Rafael Schultze-Kraft points out, this also means that up to a third of the transaction fees collected by miners were linked to these registrations. The total fees collected since the start of the Ordinals protocol are now approaching $25 million.
In total, nearly 5 million registrations have been made, including 2.5 million in the past week alone. This clearly shows the frenzy that has gripped the ecosystem. Will it last? That’s the question. While memecoins such as PEPE fell sharply yesterday, we’ll have to wait and see whether more concrete uses will emerge.
