Bitcoin has recently set a new transaction record with over 568,300 processed in a single day, exceeding its previous peak during the 2017 bull run. According to on-chain market intelligence platform Glassnode, the 307,000 Ordinals transactions contributed significantly to this figure, accounting for more than 50% of bitcoin’s daily transactions.
Since its launch in January, more than 2.39 million Ordinals have been registered, enabling the attachment of data like audio, art, or even video games to individual satoshis, the smallest unit of bitcoin. This system offers a unique digital asset comparable to an Ethereum-based NFT but with the relevant data stored completely on the bitcoin blockchain.
Consequently, a noticeable shift in the nature of bitcoin mempools, which store unconfirmed bitcoin transactions, has taken place this year. Glassnode reports that beyond ordinaries, the majority of current bitcoin transactions are related to financial activities, often initiated by cryptocurrency exchanges. Bitcoin serves as a popular medium for remittances, particularly in developing countries where traditional banking services may be limited or costly. Its low transaction fees and fast settlement times make it a desirable alternative to conventional remittance services.
These monetary transactions can significantly impact the price of bitcoin; a large volume of cryptocurrency exchange transactions can trigger a demand for bitcoin, potentially driving up its value. This marks a departure from its past use, which was predominantly limited to digital transactions.
One of bitcoin’s primary advantages is its speed and low transaction costs compared to traditional payment methods, making it a popular choice for online transactions worldwide. Bitcoin, which is not tied to any government, can be used to purchase various goods and services. Furthermore, it serves as a store of value, akin to assets like gold that exist outside of fiat financial systems.
As bitcoin has limited supply and is not readily influenced by central banks or governments, some see it as a safeguard against inflation or economic uncertainty. Consequently, many opt to hold bitcoin as a long-term investment.
The rapid rise in Ordinals transactions and subsequent increase in bitcoin transaction records signal an ongoing revolution in the crypto ecosystem. However, skepticism lingers among those who view the impact of these new uses on the bitcoin price as potentially destabilizing or unsustainable. As the crypto community continues to evolve, the balance between its proponents and skeptics remains an ongoing debate.