- Binance's research department has prepared a report on the state of the Ordinals market in 2023.
- Experts noted the spread of “inscriptions” in different sectors and blockchains.
- According to Binance, the Ordinals protocol contributed to the further development of the Bitcoin ecosystem and the attraction of new developers.
Cryptocurrency exchange Binance submitted a report about the state and key trends of the “inscriptions” sector. Analysts concluded that Bitcoin dominated the cryptocurrency market throughout 2023.
In addition to the potential approval of spot Bitcoin ETFs, the rise in dominance has been fueled by the emergence of “overwriting” and the experimental BRC-20 token standard. They caused a speculative frenzy in the crypto community and led to a surge in the number of transactions.
According to the data provided, the total number of “inscriptions” in the Bitcoin network exceeded 50 million. This event occurred after an increase in mining volumes in November and December 2023.
At the time of publication of the report, their number was close to 59 million, and the total amount of minting fees reached $260 million. Thanks to increased activity, the number of transactions in the mempool exceeded previous years and reached a historical maximum in 2023.
In addition to changing metrics, the Bitcoin network has attracted many new developers. In turn, this contributed to the emergence of new and development of existing projects:
“Existing projects are updated faster, and new ideas are generated in the community. Some might argue that these changes defeat the purpose of Bitcoin. However, innovation is important to create new use cases for the first cryptocurrency.”
Binance experts noted that the “inscriptions” originated in the Bitcoin network, but have spread to a number of other EVM-compatible blockchains. Many projects sought to replicate the success of Ordinals, the report said.
According to analysts, to interact with such assets, users can use tools such as Web3 Wallet from Binance, UniSat, Ordinals Wallet and Magic Eden wallets.
Let us remind you that the Binance crypto exchange presented a report on the state of the market for January 2024. The company noted stability with a slight increase in capitalization of 0.4%, which indicates the beginning of a period of cryptocurrency consolidation.