A new daily all-time high (ATH) has been recorded for the number of ordinal numbers inscribed on the Bitcoin (BTC) network due to a recently introduced “token standard” for the blockchain.
Bitcoin Ordinals hit 58,179 enrollments on April 2, beating the previous all-time high (ATH) of 31,692 set on March 9 by 83.5%, according to data from Dune Analytics.
The surge is believed to have been driven by the recent creation of Bitcoin Request for Comment (BRC-20) tokens on the Ordinals protocol by a pseudonymous on-chain analyst named Domo in early March.
Daily number of inscriptions of ordinal numbers shown in green. Source: Dune Analytics
While ordinals are non-fungible token (NFT)-like “digital artifacts” containing data in the form of text, JPEG images, PDFs, video, and audio formats on the Bitcoin network, the BRC-20 token standard uses ordinal Inscriptions to provide token contracts, mint tokens and transfer tokens – similar to Ethereum’s ERC-20 token standard.
Yes. The increase was mainly caused by the increase in interest around BRC-20.
— Leonidas.og (@LeonidasNFT) April 2, 2023
The arrival of ordinals and BRC-20 tokens on Bitcoin was made possible by the Taproot soft fork, which went into effect on November 14, 2021.
Over 55,000 of the April 2 enrollments were in the form of text-based ordinal numbers, many of which were represented by BRC-20 tokens, according to Leonidis.og, the host of an ordinal-focused podcast.
BRC-20 tokens — categorized as text-based ordinals — are the most commonly inscribed ordinal on Bitcoin. Source: Dune Analytics.
Leonidis explained in a tweet that the April 2 spike was due to new tools for interacting with BRC-20 tokens that have been rolled out over the past few days.
“There was a lot of excitement about BRC-20 when it launched a month ago, but eventually the hype died down. During the hiatus, the developers created tools to make interacting with BRC-20 much easier, and now we’re seeing ATH’s interest. I’ve said it before and I’ll say it again. UX counts!”
These new tools include Ord.io, UniSat Wallet and BRC-20.io. According to BRC-20.io, 1,600 tokens have been created since the creation of the BRC-20 standard.
The most popular BRC-20 tokens include Pepe, Ordi, and Punk, which currently boast respective market caps of $2.5 million, $2.1 million, and $900,000.
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Over 42,700 BRC-20 tokens were minted in the last 24 hours, mostly from wzrd, domo, BAYC, meme and pups tokens.
Bitcoin tokens can now be bought and sold on marketplaces via the BRC-20 standard, similar to Ethereum ERC-20 tokens. Source: BRC-20.io
While the market cap of BRC-20 tokens is currently less than $10 million, digital asset investment firm Galaxy Digital believes the “Bitcoin NFT” market could reach $4.5 billion by 2025.
Bitcoin community members are still divided on whether Ordinals fits well into the Bitcoin ecosystem. Proponents like Dan Held suggest it offers more financial use cases for Bitcoin, while others say it deviates from Satoshi Nakamoto’s vision of Bitcoin as a peer-to-peer cash system.
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