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Gate.io Blog Bitcoin Sets New All Time High for Daily Transactions, Boosted by Ordinals

Bitcoin Sets New All Time High for Daily Transactions, Boosted by Ordinals

18 May 17:28

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![](https://gimg2.gateimg.com/image/article/1684401663RDZZ.jpeg)

## [TL; DR]

<a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>'s daily transactions have increased to a high level due to the rise in BTC NFTs.

<a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> Ordinals will enhance the security of the network after the mining of BTC is complete.

The price of BTC is fluctuating around $27,000 .

## Introduction
<a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> is one of the most well known cryptocurrencies due to its first mover advantage. It is also listed on most, if not all, cryptocurrency exchanges. However, its dominance has been under threat for the past several years due to other layer-1 blockchains that host applications and have protocols for minting NFTs. Right away, it may maintain its dominance as a result of [BTC ordinals](https://www.gate.io/price/ordinals-ordi "BTC ordinals"). Today, we explore how <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> NFT led to its recent all-time-high daily transactions.

![](https://gimg2.gateimg.com/image/article/1684402001BTC ATH 1.png)

## Increase in daily transactions on the Bitcoin Network

The trading volume [of Bitcoin Ordinals](https://www.gate.io/learn/articles/what-are-bitcoin-ordinals/508 "of Bitcoin Ordinals") attained a new record on 30 April 2023 as the number of these NFTs reached 300,000. On the same day, the number of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> transactions attained a new record high for 2023, showing the impact the BTC Ordinals have on the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> network.

Read also: [What You Need to Know About Ordinals and BRC20?](https://www.gate.io/learn/articles/what-you-need-to-know-about-ordinals-and-brc20/507 "What You Need to Know About Ordinals and BRC20?")

In a related move, on 1 May Glassnode, an on-chain analytics provider, said that the daily transactions on <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> was heading towards a new all-time-high. This is because the daily transactions had already reached 348, 700, yet there were clear signs that it was still in an uptrend.

The last average daily peak level was in 2017 when it reached 379,000. Intotheblock, a firm that offers market intelligence and advanced DeFi tools, concurred with this statistics when it tweeted, “The 7-day average of daily <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> transactions was at its highest this week since December 2017. The increasing number of daily transactions suggests growing active usage of the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> blockchain.”

In reality, however, the highest daily transaction on the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> blockchain reached 426,814 on 30 April. This figure, inclusive of transactions of Ordinals, represents a 70% increase since the beginning of the year.

The Glassnode data shows that 30% to 40% of these transactions are a result of Ordinal in_script_ions. The other daily transactions come from monetary transactions on exchanges. Generally, the normal BTC transactions account for around 30%.

## BTC Ordinals

As a reminder, BTC Ordinals are non-fungible tokens which are created on the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> blockchain that mostly consist of text in_script_ions. In other words, users can embed data on the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> blockchain, thereby creating digital artwork and meme tokens, among others.

Although Satoshi, the smallest units of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>, are fungible they become non-fungible if people assign numerical values or inscribe some texts on them. By 8 April there were more than one million In_script_ions on the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> blockchain.

Read also: [Exploring Ordinals and BRC-20: A Revolution in Bitcoin and the Crypto Market](https://www.gate.io/es/blog_detail/2602/exploring-ordinals-and-brc-20-a-revolution-in-bitcoin-and-the-crypto-market "Exploring Ordinals and BRC-20: A Revolution in Bitcoin and the Crypto Market")

## Positive effects of Bitcoin Ordinals on the blockchain
So far, there has been a strong debate among crypto enthusiasts and followers whether or not Ordinal In_script_ions have brought more value to the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> network. The truth is that there are both negative and positive sides to that. Let’s first discuss the positive effects of Ordinals on the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> blockchain.

[Grayscale, a cross asset manager, says](https://grayscale.com/can-ordinals-unlock-new-potential-for-bitcoin/ "Grayscale, a cross asset manager, says") that the creation of a technology that enables people to develop Ordinal In_script_ions on the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> blockchain presents a big opportunity for the greater adoption of the network than before. This has also helped to expel the notion that the blockchain is rigid.

The introduction of Ordinals enhances the security of the blockchain. In the past, analysts believed that the security of the network would decrease when all the coins are mined. This is because there would be very little incentive for the miners to continue participating on the blockchain.

As a result, the development of Ordinals means that the network will continue to generate revenue through fees to support the activities of the miners. This creates security of the blockchain throughout its lifetime.

Already, we can see that Ordinals are generating much revenue for the blockchain. Data on Dune Analytics shows that on May 5 alone BTC Ordinals generated 257 BTC in fees.

![](https://gimg2.gateimg.com/image/article/1684402038BTC ATH 2.png)

As observed, the total fees generated from <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> Ordinals as of 5 April was 899.39 BTC. This shows that the Ordinals have the potential to generate much revenue for the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> blockchain.

Some analysts also believe that Ordinal In_script_ions have the potential to attract more users to the network as well as sparking more development on the blockchain. To this effect, [Grayscale commented](https://grayscale.com/can-ordinals-unlock-new-potential-for-bitcoin/ "Grayscale commented"), “While legitimate concerns exist, we believe that ordinals have the potential to positively impact the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> network in the longer-term, attracting a new wave of enthusiastic users and developers to embrace the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> community.”

Similarly, a Twitter user with the username @LeonidasNFT, said, “As long as the value gained from minting BRC-20 tokens is higher than the value lost to the in_script_ion fees, we will see fees on <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> continue to climb.” By the way, Ordinals are [in the form of BRC-20 tokens.](https://www.gate.io/uk/article/30674 "in the form of BRC-20 tokens.")

Leonidas added, “It indicates strong demand for <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>’s block space, which is critical for the long-term success of the protocol. The days of only using <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> to transfer BTC to your hardware wallet once every few years have come to an end.”

The views expressed by such users and analysts show that <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> NFT has changed the perception people have on the network. Additionally, the Ordinals have created a new use case for the blockchain.

## Negative effects of Bitcoin Ordinals on the blockchain

Currently, the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> and crypto community have not registered many concerns except that the Ordinal In_script_ions consume much space on the blockchain. The critics also say that congestion on the blockchain may also increase the network fees.

## Bitcoin Price Outlook $29,000

By the end of April <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> maintained a value of over $29,000 despite having short periods where it fluctuated below $28,000. For example, it dropped to around $27,000 when the market got the news that the United States government was planning to sell its <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> holdings.

At the time of writing, the value of BTC is fluctuating slightly below $27,000 as indicated in <a href="/price/the-graph-grt" target="_blank" class="blog_inner_link">The Graph</a> below.

![](https://gimg2.gateimg.com/image/article/1684402073BTC ATH 3.png)

As you note, the price of BTC is fluctuating around $27,000. Its value dropped below $29,000 on 6 May and it is still hovering below that price.

## Conclusion

The trading volume of BTC NFTs has been rising gradually since the beginning of the year. This has increased the revenue which the blockchain generates as well as its adoption. In the future, the Ordinal In_script_ions will become instrumental in maintaining the security of the network.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

ETH/USDT -4.45%

BTC/USDT -2.95%

GT/USDT -3.52%

TL；DR

Introduction

Increase in daily transactions on the Bitcoin Network

BTC Ordinals

Positive effects of Bitcoin Ordinals on the blockchain

Negative effects of Bitcoin Ordinals on the blockchain

Bitcoin Price Outlook $29,000

Conclusion

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