Bitcoin’s BRC-20 and Ordinals Inscriptions, once the driving forces behind a surge in Bitcoin transaction fees, have seen a surprising downturn in recent weeks. This shift has prompted major marketplaces to pause BRC-20 trading, stirring speculation within the Bitcoin community about the future of these innovative features.
Temporary Halt in BRC-20 Trading
On October 22, Magic Eden on Bitcoin made a significant announcement: the temporary suspension of BRC-20 trading. This move, the platform explained, is a safety measure while awaiting a comprehensive consensus on Ordinals Inscriptions. These inscriptions, made possible by the Taproot upgrade in November 2021, serve as the backbone for BRC-20 functionality.
BRC-20 tokens depend on JSON (JavaScript Object Notation) Ordinals Inscriptions to execute token contracts, create new tokens, and transfer tokens. These advancements had previously led to increased BTC transaction fees, but the current scenario seems to be changing.
Decline in BRC-20 Transactions
Data from Dune Analytics indicates a dramatic change. In September, BRC-20 had an impressive peak of 400,000 transactions, accounting for over 60% of total BTC transactions and contributing to more than 30% of the Bitcoin network’s fees. Fast forward to the present, BRC-20 transactions have plunged to around 1,000, representing less than 2% of total BTC transactions. Their contribution to BTC fees has also fallen to less than 1%.
Drop in Daily Ordinals Inscriptions
Ordinal Inscriptions haven’t fared much better. Dune Analytics data shows that these inscriptions peaked at over 400,000 daily in September. Today, daily inscriptions have dwindled to less than 6,000, with the fees for these inscriptions also witnessing a substantial drop.
The decline in Bitcoin’s BRC-20 and Ordinals Inscriptions, as depicted by Dune Analytics, suggests a broader trend, potentially influencing Magic Eden’s decision to halt BRC-20 trading. The full impact of this decline will become clearer in the coming days and weeks.
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