On-chain analytics company Glassnode stated on September 25 that there is little evidence to imply that inscriptions are stealing blockspace away from higher-value Bitcoin (BTC) monetary exchanges, in spite of worries that Bitcoin Ordinals are clogging the network. According to the company, this is probably because inscription users typically specify modest cost rates and indicate a willingness to wait longer for confirmation. The lowest available blockspace appears to be being purchased and consumed by inscriptions, which are easily replaced by more urgent money transactions.
Since its launch in February 2023, Bitcoin Ordinals have contributed significantly to the network’s daily transaction volume. Glassnode pointed out that this hasn’t always been represented in its share of mining fees, with inscriptions only accounting for 20% of Bitcoin transaction fees. Inscriptions have boosted fees for miners and strengthened the base-load demand for blockspace, but according to Glassnode, Bitcoin’s hashrate has also climbed by 50% since February. This has made it more difficult for miners to jump in and take advantage of revenue fees.
Bitcoin‘s price is currently $26,216, although many industry experts anticipate some price growth in the months leading up to the halving event, which is expected to take place in April 2024. The BRC-20 tokens, which were created one month after Casey Rodamor debuted the Ordinals protocol on Bitcoin in February, are currently the source of the majority of inscriptions.As a potential replacement for BRC-20s, Rodarmor proposed “Runes” on September 25. He claimed that a UTXO-based fungible token protocol wouldn’t leave as much “junk” unspent transaction outputs on the Bitcoin network.