The Bitcoin network has achieved a significant milestone with over 65 million Ordinals inscriptions, right before the highly anticipated Bitcoin halving event. According to data from Dune, this milestone was reached on April 11, less than a year and three months since their launch in January 2023.
Ordinals inscriptions are the first type of nonfungible tokens (NFTs) on the Bitcoin blockchain. Unlike other popular NFT collections that store their metadata on centralized servers, Ordinals live solely on the Bitcoin blockchain, eliminating additional vulnerabilities.
This achievement comes just before the Bitcoin halving, which is expected to occur on or around April 19. The halving will reduce block rewards from 6.25 BTC to 3.125 BTC. As the halving approaches, Ordinals have generated over $458 million in network fees for Bitcoin miners, providing crucial support for mining firms.
The milestone of 65 million Ordinals inscriptions highlights the growing demand for block space on the Bitcoin network and the necessity for additional layer-2 networks. Mithil Thakore, CEO of Velar, stated that this indicates the need for Bitcoin decentralized finance (BTCFi) and additional scalability solutions.
BTCFi, or Bitcoin decentralized finance, aims to bring DeFi capabilities to the Bitcoin network. If the current adoption rate continues, BTCFi has the potential to rival the innovation of Ethereum-based DeFi in the future, according to Nash Lee, co-founder of MerlinSwap.
As the Bitcoin halving draws near, it is anticipated that mining profitability may not necessarily decline. This event is closely watched by analysts, with predictions of a potential $150K Bitcoin price peak.
Overall, the achievement of 65 million Ordinals inscriptions showcases the growing demand for blockchain technology and the potential for Bitcoin to expand beyond its current capabilities.