A new daily all-time high (ATH) has been recorded for the number of ordinals enrolled in Bitcoin (BTC) due to a recently released "token standard" for the blockchain.
Bitcoin Ordinals reached 58,179 sign-ups on April 2, surpassing the previous all-time high (ATH) of 31,692 on March 9 by 83.5% according to Dune Analytics data.
The rise is believed to be driven by the recent creation of "Bitcoin Request for Comment" (BRC-20) tokens on the Ordinals protocol by a pseudonymous on-chain analyst named Dome in early March.
While ordinals are "digital artifacts" similar to non-fungible tokens (NFTs) that carry data in the form of text formats, JPEG images, PDF, video and audio On the Bitcoin network, the BRC-20 token standard uses ordinal inscriptions to implement token contracts, mint tokens, and transfer tokens, similar to Ethereum's ERC-20 token standard.
Yes. The increase has been mainly caused by increased interest around BRC-20.
— Leonidas.og (@LeonidasNFT) April 2, 2023
The arrival of the Ordinals and BRC-20 tokens to Bitcoin was enabled by the Taproot soft fork, which entered into force on November 14, 2021.
More than 55,000 of the April 2 entries were submitted in the form of text-based ordinals, many of which were represented by BRC-20 tokens, according to “Leonidis.og”, which presents The Ordinal Show.
Leonidis explained in a tweet that the April 2 surge occurred due to new tools used to interact with the BRC-20 tokens released in the past few days.
“There was a lot of excitement around BRC-20 when it launched a month ago, but eventually the hype died down. During the hiatus, the developers created tools to make it easier to interact with BRC-20, and now we're seeing interest from ATH. I've said it before and I'll say it again. UX matters!”
Those new tools include Ord.io, UniSat Wallet, and BRC-20.io. According At BRC-20.io, 1600 tokens have been created since the BRC-20 standard was created.
Among the most popular BRC-20 tokens are "pepe", "ordi" and "punk", which currently have respective market caps of $2.5 million, $2.1 million and $900,000.
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More than 42,700 BRC–20 tokens have been minted in the last 24 hours, mostly coming from wzrd, domo, BAYC, meme, and pups tokens.
While the market capitalization of BRC-20 tokens currently sits at less than $10 million, digital asset investment firm Galaxy Digital believes that the "Bitcoin NFT" market can reach $4.5 billion by 2025.
Bitcoin community members are still divided about whether Ordinals is a good fit for the Bitcoin ecosystem. Proponents like Dan Held suggest that it offers more financial use cases in Bitcoin, while others say that it is moving away from Satoshi Nakamoto's vision of Bitcoin as a peer-to-peer cash system.
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