ORDI Surges 50%, Bitcoin Ordinals Activity Boosts

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By A D

It appears that a bit of confusion within the crypto community had a positive effect on ORDI, the meme coin based on Bitcoin Ordinals. The surge of 50% in ORDI’s price brought new attention and hype to Bitcoin Ordinals and BRC-20 tokens.

The cryptocurrency market is no stranger to rapid price fluctuations and market anomalies, and the recent listing of the ORDI token on Binance is a vivid example of this phenomenon. In just a span of 24 hours, ORDI’s value skyrocketed by a staggering 50% following its listing on the renowned crypto exchange Binance.

Binance introduced ORDI as an emerging project under the “seed” tag. This classification signals innovative projects with the potential for higher volatility and risks compared to other tokens.

This move by Binance came with a warning: “ORDI is a relatively new token that poses a higher-than-normal risk, and as such will likely be subject to high price volatility.” Investors were strongly advised to exercise risk management, conduct thorough research on ORDI’s fundamentals, and fully comprehend the project before trading the token.

ORDI, Not ORDI- A Slight Misunderstanding

In a pretty hilarious turn of events, the listing of ORDI on Binance inadvertently gave rise to confusion within the crypto community. Many traders and investors mistakenly conflated the BRC-20 memecoin with the native Ordinals protocol token. This misunderstanding proved to be a boon for the memecoin, extending its rally to an impressive 100% over a four-day period.

ORDI price chart
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Casey Rodarmor, Ordinals creator, clarified ORDI’s link to the protocol and Binance support on Twitter.

Increase in Activity for Bitcoin Ordinals

Ordinals developer Leonidas has brought attention to the surge in Ordinals trading and inscription activity on the Bitcoin blockchain. In the past 24 hours, Bitcoin witnessed a staggering 530,788 transactions, with an astonishing 450,785 of those transactions being Ordinals-related. This means that Ordinals have accounted for a whopping 84.9% of Bitcoin’s recent activity.

As Ordinals trading has surged, the strain on the Bitcoin network has become more evident. Throughout the summer, Bitcoin’s average transaction fee remained relatively stable, fluctuating within 20% of a dollar. However, things took a turn when the average Bitcoin transaction fee reached a six-month high of $5.94 on Tuesday, November 6.

This sudden increase in transaction fees is a clear indicator of the strain Ordinals trading has placed on the Bitcoin network. It’s a concern that the crypto community has faced before, notably when NFT trading caused network congestion in May.

ORDI, SHIB, FLOKI, DOGE- The Meme Coin Mania

Meme coins continue their rally in the crypto market. DOGE and SHIB have gained 6.5% and 3.6% in one week, maintaining their positions as top meme coin tokens, newer and trending meme tokens like PEPE and FLOKI have been driving the market recently.

Solana-based BONK, which rallied by nearly 101% within a week, has exerted a substantial impact. Aditionally, the recent meme coin action seems have driven open interest increases in Dogecoin and Shiba Inu surpassing those in Bitcoin.

BONK price chart
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What Are Bitcoin Ordinals?

The world of cryptocurrencies is ever-evolving, and 2023 seems to be the year of groundbreaking innovations. Among these innovations, Bitcoin Ordinals and BRC-20 tokens are gaining significant traction.

The recent surge in interest surrounding Ordinals can be attributed to Binance’s pivotal move. Binance, one of the world’s largest cryptocurrency exchanges, began supporting the original BRC-20 token known as ORDI. This support from Binance reinvigorated interest in Ordinals-related assets, including both fungible tokens and image-based NFTs.

Bitcoin Ordinals

Bitcoin Ordinals, a protocol introduced by Casey Rodarmor, has made significant waves in the cryptocurrency world. This innovative protocol enables individual satoshis within the Bitcoin blockchain to be distinguished with a unique identifier, paving the way for the creation of Non-Fungible Tokens (NFTs) directly on the Bitcoin blockchain.

Bitcoin Ordinals introduces a unique numbering system that assigns a distinctive number to each satoshi, equivalent to 1/100 million of a Bitcoin. This system enables the tracking and transfer of these individual satoshis, unlocking a multitude of possibilities.

An example of a Bitcoin inscription by Crypto Punk
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By combining the numbering system with the inscription process, users can mint unique digital assets directly on the Bitcoin blockchain. These assets can encompass various forms of data, such as art, profile pictures, or text, similar to NFTs. Ordinals’ inception has breathed new life into the NFT space on Bitcoin.

Casey Rodarmor’s protocol harnessed the power of two key updates to the original Bitcoin protocol: Segregated Witness (SegWit) and Taproot.

  • Segregated Witness (SegWit): This update separated witness information, also known as the witness script, from transaction data. Storing witness information in a distinct data structure on the blockchain is now possible, independent of the transaction data. This change not only increased Bitcoin’s block size but also opened the door to inscribing image and video data in the witness script, alongside digital signatures and other validation information.
  • Taproot: Taproot brought forth a new Bitcoin address format that Bitcoin Ordinals employs to identify specific satoshis. It introduced the ability to pinpoint particular satoshis on the blockchain, allowing for unique differentiation.

In a recent surge of activity, Bitcoin Ordinals transaction volume reached its highest levels since May. In a single day, traders exchanged approximately $14.7 million worth of Bitcoin-based assets.

BRC-20 Tokens

One of the fascinating developments tied to Bitcoin Ordinals is the emergence of BRC-20 tokens. The Ordinals protocol on the Bitcoin blockchain creates these tokens, introducing a new dimension to Bitcoin’s capabilities.

BRC-20 tokens burst onto the scene earlier this year, introduced by Web3 developer Rodarmor in January. These tokens have swiftly become one of the most significant technological advancements in the blockchain domain, and they bear a resemblance to the well-known ERC-20 tokens on the Ethereum network.

Unlike traditional ERC-20 tokens on Ethereum, BRC-20 tokens don’t rely on smart contracts. Instead, they offer distinct functionalities and use cases. The pioneer BRC-20 token, ORDI, exemplifies the potential of this new token standard, with a market cap of over $200 million. Other BRC-20 tokens like MEME, PIZA, and PEPE have also gained visibility, reflecting the growing interest in this innovative approach.

the top 10 coins on brc-20- ORDI at rank #2
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Self-custody wallet providers, including BitKeep (now Bitget Wallet), have facilitated BRC-20 token deposits and withdrawals, further solidifying their presence. The total market capitalization of BRC-20 tokens stands at an impressive $1.34 billion, indicating a growing importance in the crypto ecosystem.

BRC-20 tokens open up new horizons for Bitcoin’s utility. They can be transferred like digital cash, used for payments on commercial platforms, and even kickstart a vibrant DeFi economy, similar to what Ethereum has achieved. Furthermore, BRC-20 tokens can be tokenized to represent real-world assets, enhancing transparency and liquidity for traditionally illiquid assets like real estate.

Understanding The Difference

  1. Nature of the Asset:
    • Bitcoin Ordinals are individual satoshis inscribed with rich data. They are more like unique digital artifacts or collectibles.
    • BRC-20 tokens are fungible tokens, similar to traditional cryptocurrencies, but they are created using the Ordinals protocol on the Bitcoin blockchain.
  2. Functionality:
    • Bitcoin Ordinals primarily serve as digital collectibles, their value dependent on the content inscribed.
    • BRC-20 tokens offer traditional functionality, allowing minting, transferring, and management of fungible tokens.
  3. Use of Smart Contracts:
    • Bitcoin Ordinals do not interact with smart contracts, as their primary purpose is to attach data to Bitcoin’s smallest units.
    • BRC-20 tokens, while based on the Ordinals protocol, do not involve smart contracts either.

The Great Debate

an excerpt from a developer on "[bitcoin-dev] [Mempool spam] Should we as developers reject non-standard Taproot transactions from full nodes?"
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Bitcoin Ordinals has sparked intense debates within the cryptocurrency community. While some critics argue that inscribed satoshi Ordinals inefficiently use block space, leading to potential increases in transaction fees and slower processing times, proponents see a world of opportunities for expanding Bitcoin’s utility.

Potential Use Cases:

  • Ordinal NFTs: The creation of unique NFTs directly on the Bitcoin blockchain is one of the most evident applications of Bitcoin Ordinals. This opens up a realm of possibilities for digital artists, collectors, and creators.
  • Security Tokens and Stablecoins: The protocol could also be harnessed to attach ordinal satoshis to individual security tokens or stablecoins, enhancing their traceability and security.
  • Smart Contracts: By utilizing Bitcoin Ordinals, the Bitcoin network could venture into the realm of smart contracts, a feature that has been a hallmark of other blockchain networks.
  • Expanding the Audience: Bitcoin Ordinals has the potential to introduce Bitcoin to a broader audience, attracting those interested in more than just financial transactions.

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