Bitcoin

ORDI

April

Earlier this year, the market saw an unprecedented uptake of Ordinals and its associated Inscriptions. <a href="https://cryptoslate.com/podcasts/the-state-of-bitcoin-and-nfts-bittalk-5/" rel="noopener noreferrer nofollow">Ordinals</a> serve as a unique numbering scheme for satoshis, allowing users to track and transfer individual sats. Inscriptions are a form of NFTs on Bitcoin’s network, enabling users to etch their messages on the <a href="https://cryptoslate.com/coins/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> blockchain. The introduction of the Ordinals theory marked a significant milestone, heralding Bitcoin’s foray into the NFT space. 
When the popularity of Ordinals and Inscriptions <a href="https://cryptoslate.com/how-ordinals-are-affecting-bitcoin-mempools-transaction-size/" rel="noopener noreferrer nofollow">surged</a>, some market observers speculated that it was a fad. However, recent on-chain data suggests otherwise. The demand for Ordinals remains robust, and the Inscriptions phenomenon might not be waning for a while. 
The Bitcoin mempool, a holding area for unconfirmed transactions, is a critical metric to gauge this demand. An overflowing mempool indicates a high volume of pending transactions, often leading to increased transaction fees and congestion in the Bitcoin network. The mempool hasn’t cleared since April this year, indicating sustained activity and demand. 
<figure id="attachment_359676" aria-describedby="caption-attachment-359676" style="width: 100%" class="wp-caption aligncenter"> 
 <img class="wp-image-359676 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.26.45-1.png" alt="mempool 2023" width="2176" height="1276" srcset="https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.26.45-1.png 2176w, https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.26.45-1-300x176.png 300w, https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.26.45-1-1024x600.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.26.45-1-768x450.png 768w, https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.26.45-1-1536x901.png 1536w, https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.26.45-1-2048x1201.png 2048w" sizes="(max-width: 2176px) 100vw, 2176px"> 
 <figcaption id="caption-attachment-359676" class="wp-caption-text">
 Graph showing the number of transactions waiting in the Bitcoin mempool by a relative fee in 2023 (Source: <a href="https://studio.glassnode.com/metrics?a=BTC&amp;ema=0&amp;m=mempool.TxsCountDistribution&amp;s=1672527600&amp;u=1695374613&amp;zoom=ytd" rel="noopener noreferrer nofollow">Glassnode</a>) 
 </figcaption> 
</figure> 
This mempool congestion correlates with a surge in the count of new Inscriptions. 
According to data from Glassnode, there was a notable increase in the daily creation of new Inscriptions towards the end of April. By mid-May, 400,000 new Inscriptions were created in just one day. While a dip in June suggested a potential waning interest, the numbers bounced back. September ended with an all-time high of 450,000 new Inscriptions in a single day. 
While the early days saw the dominance of image-based Inscriptions, text-based ones have now taken the lead. 
<figure id="attachment_359671" aria-describedby="caption-attachment-359671" style="width: 100%" class="wp-caption aligncenter"> 
 <img class="size-full wp-image-359671" src="https://cryptoslate.com/wp-content/uploads/2023/09/inscriptions_new-count-2023.png" alt="ordinals inscriptions new daily count 2023" width="2400" height="1200" srcset="https://cryptoslate.com/wp-content/uploads/2023/09/inscriptions_new-count-2023.png 2400w, https://cryptoslate.com/wp-content/uploads/2023/09/inscriptions_new-count-2023-300x150.png 300w, https://cryptoslate.com/wp-content/uploads/2023/09/inscriptions_new-count-2023-1024x512.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/09/inscriptions_new-count-2023-768x384.png 768w, https://cryptoslate.com/wp-content/uploads/2023/09/inscriptions_new-count-2023-1536x768.png 1536w, https://cryptoslate.com/wp-content/uploads/2023/09/inscriptions_new-count-2023-2048x1024.png 2048w" sizes="(max-width: 2400px) 100vw, 2400px"> 
 <figcaption id="caption-attachment-359671" class="wp-caption-text">
 Chart showing the number of new Inscriptions created daily in 2023 (Source: <a href="https://studio.glassnode.com/dashboards/btc-ordinals-inscriptions" rel="noopener noreferrer nofollow">Glassnode</a>) 
 </figcaption> 
</figure> 
Bitcoin transaction <a href="https://cryptoslate.com/research-ordinals-brc-20-drive-financial-boon-for-bitcoin-miners/" rel="noopener noreferrer nofollow">fees spiked</a> in May due to the surge in Inscriptions and the congested mempool. However, despite the continued demand for Ordinals, the fees have since stabilized. This stabilization suggests that the market has adjusted to the Inscriptions phenomenon, and the Bitcoin network has found equilibrium. 
<figure id="attachment_359677" aria-describedby="caption-attachment-359677" style="width: 100%" class="wp-caption aligncenter"> 
 <img class="wp-image-359677 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.30.51.png" alt="bitcoin transaction fees 2023" width="2180" height="1290" srcset="https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.30.51.png 2180w, https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.30.51-300x178.png 300w, https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.30.51-1024x606.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.30.51-768x454.png 768w, https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.30.51-1536x909.png 1536w, https://cryptoslate.com/wp-content/uploads/2023/09/Screenshot-2023-09-22-at-11.30.51-2048x1212.png 2048w" sizes="(max-width: 2180px) 100vw, 2180px"> 
 <figcaption id="caption-attachment-359677" class="wp-caption-text">
 Graph showing the total amount of fees paid on the Bitcoin network in 2023 (Source: <a href="https://studio.glassnode.com/workbench/507af7a9-3f6b-43cb-543d-8b531d7200cc?s=1672527600&amp;u=1695371430&amp;zoom=ytd" rel="noopener noreferrer nofollow">Glassnode</a>) 
 </figcaption> 
</figure> 
The consistent demand for Inscriptions suggests they may have found a niche and a dedicated user base. Their impact on the Bitcoin network, especially transaction fees, and blockspace, cannot be ignored. While the initial surge might have caused some disruptions, the network’s ability to adapt and stabilize showcases its resilience. 
The post <a rel="noopener noreferrer nofollow" href="https://cryptoslate.com/bitcoins-mempool-congesion-and-unwavering-demand-for-inscriptionsi/">Sustained Bitcoin mempool congestion shows unwavering demand for Ordinals Inscriptions</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://cryptoslate.com">CryptoSlate</a>.

Sustained Bitcoin mempool congestion shows unwavering demand for Ordinals Inscriptions

CryptoSlate

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