Bitcoin Sets New Daily Transaction Record with the Help of Ordinals Protocol
Ordinals Integration into Blockchain and Rise in Small Transactions Indicate Positive Market Growth for Bitcoin
Wed, 03 May 2023, 08:20 am UTC
Bitcoin hit new record-breaking numbers of daily transactions on Monday, fueled by Ordinals, a protocol allowing the integration of data into the Bitcoin blockchain. According to BitInfoCharts, the count reached 682,300, surpassing the previous high of 568,300. Records also indicate that 372,832 transactions, nearly 54.6 percent, were attributed to Ordinals. By offering users the opportunity to invest in cryptocurrency and much more, Ordinals broadens the network's user base.
Data analytics firm Dune Analytics published that $1 transactions have begun to rise as well, indicating that most Bitcoin users were leveraging the blockchain for trading purposes, an observation made by Tom Rodgers, Head of Research at ETC Group. The majority of Bitcoin users have typically leaned towards the higher end of the $1,000-$10,000 range; however, transactions seem to have recently become much smaller. Rodgers expressed that transaction amounts falling to $1 were a positive sign of market growth and indicated that people are comfortable moving Bitcoin around for trading purposes.
Bitcoin velocity, a measure of the speed at which Bitcoin is transacted by users instead of being held in cold wallets, has also gone up significantly, according to Rodgers in an interview with Insider. Rodgers stated that this was evidence that more people are participating in the industry to reap profits instead of just holding to speculate gains in the long run.
The Ordinals protocol has emerged as an innovative system that assigns a serial number to each satoshi and tracks them across transactions. The primary function of Ordinals is to enable users to differentiate individual satoshis by attaching supplementary data to them, a process referred to as "inscription." This unique approach has contributed to the growing popularity of the protocol and expanded the possibilities for Bitcoin's blockchain.
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