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Despite concerns about the decline in prices and the viability of Bitcoin NFTs, Ordinals have managed to capture a staggering 85% of Bitcoin network activity. This robust performance is a testament to these unique digital assets’ enduring appeal and utility.

Amidst the recent price collapse in the cryptocurrency market, Bitcoin Ordinals have managed to retain their significance. 

Notably, over the past week, Ordinal inscriptions have consistently constituted the majority of Bitcoin’s network activity. On August 21, a prominent developer known as “Leonidas” highlighted that out of a total of 530,788 transactions within 24 hours, an impressive 450,785 transactions were Ordinals related.

This compelling data counters the notion that Ordinals are losing their relevance.

Dune Analytics confirms this trend with its data indicating that over 400,000 ordinal inscriptions were recorded on August 20. Simultaneously, Bitinfocharts reported a daily transaction count of around 556,000, signifying the enduring prominence of Ordinals in the network. 

These statistics paint a vivid picture that Ordinal inscriptions maintained their position as the driving force behind more than three-quarters of the network’s total activity on August 20.

Leading industry researcher Eric Wall adds further credence to the dominance of Ordinals within the Bitcoin network. Observing the past week’s transactions, Wall notes that a substantial 54% of Bitcoin transactions were Ordinals related. Such consistent patterns of Ordinal engagement reaffirm their significance within the cryptocurrency ecosystem.

Dune Analytics also reveals fascinating insights into the economic implications of Ordinals activity. With a total of 25.5 million Ordinal inscriptions, these assets have generated a staggering $53.4 million in fees on the Bitcoin network. 

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Image source: Dune analytics

A significant portion of this activity is attributed to the minting of BRC-20 tokens, with a noteworthy 1.9 million tokens minted in the previous week. The ability of Ordinals to generate substantial fees underscores their practicality and utility.

Contrary to the prevailing narrative, recent observations challenge the notion of a decline in Ordinals NFT usage. 

Notably, a report by DappRadar on August 17 suggested a substantial drop in Ordinals NFT sales volume and usage since the peak in May. However, it is crucial to recognize that this report primarily tracked the sales and trading volume of NFTs minted on the Bitcoin network. 

In contrast, the continued high level of inscription activity implies that Ordinals’ fundamental appeal remains strong.

Bitcoin Ordinals emerged as a novel concept, enabling the inscription of data onto the smallest unit of Bitcoin, the Satoshi. Since its launch in January, this protocol has gained momentum, causing congestion and spikes in transaction fees. 

Despite facing challenges and uncertainties, the Ordinals ecosystem has demonstrated its capacity to adapt, innovate, and thrive.

The decline in Bitcoin Ordinals’ NFT activity serves as a valuable lesson for the cryptocurrency community. It underscores the need for continuous innovation and adaptation to evolving market dynamics. 

The Ordinals narrative offers a poignant reminder that even within a rapidly changing landscape, the potential for growth and resilience is ever-present.