Bitcoin’s BRC-20 and Ordinals Inscriptions: Unraveling the decline

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Bitcoin’s BRC-20 and Ordinals Inscriptions: Unraveling the decline
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BRC-20 and Ordinals Inscriptions were major drivers of Bitcoin transactions and fees, but that has changed with their decline.

The impact of BRC-20 tokens and Ordinals Inscriptions are dwindling, raising questions about their future. Magic Eden’s move might be just the beginning.Nevertheless, the influence of these Bitcoin innovations appears to be waning, as a major marketplace has temporarily halted the trading of BRC-20 tokens.Ordinals Inscriptions became possible due to the November 2021 Taproot upgrade and serve as the underlying technology for BRC-20’s functionality.

BRC-20 tokens rely on JSON Ordinals Inscriptions for executing token contracts, generating new tokens, and transferring tokens.experienced an impressive peak of 400,000 transactions. During that same month, BRC-20 transactions accounted for over 60% of the total BTC transactions. Additionally, the volume of these transactions contributed to more than 30% of the fees collected by the Bitcoin network.However, the situation has drastically changed as of the current moment.

Furthermore, the contribution of BRC-20 transactions to BTC fees has dropped to less than 1%. Unfortunately, Ordinal Inscriptions hasn’t fared any better in this regard.However, at present, daily inscriptions have decreased to less than 6,000. Furthermore, the fees paid for these inscriptions have seen a substantial drop, plummeting from around 8 BTC in September to less than 1 BTC.

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