Despite rumors that the recent price drop of the cryptocurrency and the waning excitement around Bitcoin NFTs have caused the demise of Ordinals tokens, they continued to dominate activities on the Bitcoin network last week. According to data from crypto data analytics platform Dune Analytics, three-quarters of the transactions on the Bitcoin network on August 20 were conducted through Ordinals.
On August 21, Ordinals developer “Leonidas” stated that Bitcoin had conducted 530,788 transactions in the past 24 hours, with 450,785 of them related to Ordinals.
“In an environment where everyone claims ‘Ordinals is dead,’ they accounted for 84.9% of the activities on Bitcoin.”
While Dune Analytics reported over 400,000 ordinal tokens on August 20, another data analytics platform, Bitinfocharts, supported this trend by stating that the daily number of Bitcoin transactions was around 556,000. This means that over three-quarters of the current network activities on August 20 were related to Ordinals.
Industry researcher Eric Wall observed that 54% of the transactions on the Bitcoin network during the week were Ordinals-related. According to Dune, the total number of Ordinals tokens is 25.5 million, creating a value of $53.4 million on the Bitcoin network. The tokens are currently dominated by the BRC-20 side, and 1.9 million tokens were minted last week.
Recent observations contradict a DappRadar report claiming a decrease in Ordinals NFT usage and sales volume since its peak in May, leading some crypto observers to declare that Ordinals is “dead.”
However, the report tracks the sales and transaction volume of NFTs minted on the Bitcoin network, not the actual token activity that still appears to be high. The Bitcoin Ordinals protocol was launched in January, and thousands were minted in the following months on the Bitcoin network. This was followed by a token frenzy, causing congestion and sudden spikes in transaction fees on the network in April and May.
Bitcoin Ordinals can be summarized as an immutable asset token that allows data to be written on a Satoshi, the smallest unit of Bitcoin.