Bitcoin Inscriptions Surpass NFT Minting On Ethereum, Solana, Polygon Despite Bear Market

Bitcoin inscriptions, a new way to store data on the Bitcoin (CRYPTO: BTC) blockchain, have surpassed 35 million since their inception in January.

Ordinals are digital artifacts that can be inscribed onto Bitcoin using the Ordinals protocol.

They can be anything from text files, images, and audio to videos, and can be used to store a wide variety of data on the Bitcoin blockchain.

According to a report by Galaxy Digital, text files represent the vast majority of Bitcoin inscriptions, accounting for approximately 95% of all inscriptions.

Also Read: People Are Going To Start Cashing Out Bitcoin — Here’s Why

Image-based inscriptions account for approximately 3.5% of all inscriptions, with the remaining 1.5% consisting of other types of digital artifacts.

Ordinals Activity Since March: In the first 200 days since the first inscription on Bitcoin, a total of 1.14 million image-based inscriptions have been created.

This surpasses the number of non-fungible tokens (NFTs) minted on other blockchains, such as Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL), and Polygon (CRYPTO: MATIC), since the debut of NFTs on these respective networks.

However, it is important to note that Bitcoin’s minting activity throughout the first 200 days is still much lower than the total minting activity for NFTs on other blockchains, illustrating how Ordinals still have a long way to go in terms of adoption relative to the broader NFT ecosystem.

Ordinals Trading Volume: Despite the unfavorable market conditions for NFTs in 2023, Ordinals accomplished meaningful growth.

Bitcoin has accumulated the third-highest NFT trading volume by the network at $596.4 million.

Even when excluding BRC-20s, which represent ~30% of all Ordinals volume ($187.5 million), Bitcoin remains the third most popular chain for digital collectible activity after Ethereum and Solana.

Ordinals Marketplaces: The most dominant marketplaces by volume for Ordinals are now Magic Eden, Unisat, and OKX at 28%, 28%, and 38% respectively.

Implications for the Future of Bitcoin: The growing popularity of Bitcoin inscriptions is a significant development for the Bitcoin ecosystem.

It suggests that Bitcoin is being used for more than just a store of value and a medium of exchange. It is also being used to store and share data, which could lead to new and innovative use cases for Bitcoin in the future.

For example, Bitcoin inscriptions could be used to create a decentralized social media platform or a decentralized storage platform. They could also be used to create new forms of digital art and collectibles.

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