Bitcoin’s weekly average transactions reached its highest point since Dec 2017, totalling about 396,000 this past week, according to IntoTheBlock.

This stat comes after Bitcoin Ordinals hit a daily mint record of 223,000 in April, with text-based inscriptions dominating the network.

Grayscale and several other firms have backed the Ordinals project to shape the bullish trend of Bitcoin in Q2 2023.

Bitcoin (BTC) Ordinals, popularly referred to as Bitcoin non-fungible tokens (NFTs), are steering a new pathway for the growth of the Bitcoin network despite the harsh criticism from a section of the community in its development phase.

Bitcoin’s average weekly transactions have hit levels not recorded in six years, according to new data from crypto analytics firm IntoTheBlock. On Sunday, the seven-day average of BTC stood at 396,000, its highest mark since Dec 2017.

The surge in transaction volumes can be linked to the rising popularity of Bitcoin Ordinals, a project launched five months ago amid widespread criticisms. Daily inscriptions on Ordinals hit a new record on Saturday with over 223,000 NFTs, according to a Dune report.  

This daily figure above 200,000 was the first after showing string signs in April, breaking its record four times, including 72,000 daily inscriptions and 193,000 inscriptions on April 2 and April 23rd, respectively. 

Text-based Ordinals inscriptions also dominated the ecosystem compared to image-based which differs from the popular Ethereum NFT model. On Saturday, out of the 233,000 inscriptions 99.,8% were text-based, while 273 inscriptions, 0.1, were image-based.

Within its first five months, the total number of Bitcoin Ordinals crossed 2 million on April 26 and further passed 2.5 million Ordinals 2 days later.

A new path for Bitcoin

Despite criticisms from Bitcoin Maxis and other commentators on the development of NFTs on the Bitcoin network, the Ordinal project has proved doubters wrong, with many tipping marking it as ‘instrumental’ in the next bull run.

Digital asset investment firm Grayscale has marked increased miner fees and developer enthusiasm as two positive ways Ordinals could impact the network.

“The advent of ordinals has led to an increase in total fees paid to miners, which could potentially establish a sustainable baseline level of transaction fees to incentivize miners,” the firm wrote.

The total amount now paid to miners stands at $6.6 million at press time, giving miners the necessary boosts at survival. The firm also believes the project would be key to attracting a new user base to the network, just like NFTs in Ethereum.

“We believe the emergence of ordinals is likely to promote a development-oriented community and culture in support of the Bitcoin network.”

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Filed under: Bitcoin - @ May 1, 2023 7:03 pm