Bitcoin hits record 44M non-zero addresses, thanks to Ordinals: Glassnode

The launch of Bitcoin nonfungible tokens (NFTs) — often called Ordinals — has tipped the variety of non-zero Bitcoin addresses to a brand new all-time excessive of 44 million, in line with crypto analytics platform Glassnode.

In a Feb. 13 report from Glassnode, the agency explained that for the primary time in Bitcoin’s 14-year historical past, a portion of community exercise is getting used for functions apart from peer-to-peer financial Bitcoin (BTC)  transfers:

“It is a new and distinctive second in Bitcoin historical past, the place an innovation is producing community exercise with out a classical switch of coin quantity for financial functions.”

Glassnode defined that the Ordinals surge has contributed to a “short-term uptick in Bitcoin community utilization of late” which has introduced many “new energetic customers” with a non-zero BTC steadiness to the community:

Bitcoin addresses with a non-zero steadiness is surging. Supply: Glassnode

“The first supply of this exercise is because of Ordinals, which as a substitute of carrying a big payload of coin quantity, is as a substitute carrying a bigger payload of information and new energetic customers,” stated Glassnode.

“This describes a progress within the person base […] from utilization past the everyday funding and financial switch use circumstances,” it added.

A brand new participant competing for block area

Glassnode famous that Ordinals is now competing for block area demand, which is “creating upward strain on the payment market,” however famous that this hasn’t led to a major enhance in Bitcoin transaction charges. 

In response to Glassnode, since Ordinals launched on Jan. 21, the higher vary of the imply Bitcoin block measurement has elevated from 1.5-2.0 MB to three.0-3.5 MB in a matter of weeks.

Imply Bitcoin block sizes during the last three months. Supply: Glassnode

Nevertheless, this hasn’t led to a surge in charges. Whereas there have been some short-lived spikes, Glassnode acknowledged {that a} “new decrease certain transaction payment required for block inclusion” has been reached since Ordinals made their mark on Jan. 21.

Median transaction charges on the Bitcoin community during the last 5 years. Supply: Glassnode

The technological functions behind the Ordinal protocol had been enabled by the Taproot mushy fork, which took impact in November 2021. Bitcoin Ordinals launched on Jan. 21.

By way of using the Ordinals numbering scheme, Bitcoin customers can assign arbitrary content material to satoshis — the smallest denomination of BTC — which allows them to inscribe Bitcoin-native, nonfungible token (NFT)-like photographs.

There have been over 78,400 NFT-like photographs and movies inscribed so far.

The newest Ordinals inscripted onto the Bitcoin community. Supply. Ordinals

The affect of the NFT-like photographs on Bitcoin hasn’t come with out controversy although.

Associated: Bitcoin is already in its ‘subsequent bull market cycle’ — Pantera Capital

Some notable “Bitcoiners” akin to Blockstream CEO Adam Again have just lately expressed their dislike for the Ordinals protocol, suggesting that it deviates from Bitcoin’s function as a peer-to-peer digital money system.

Nevertheless, others have been extra open to the thought. Bitcoin bull Dan Held has asserted on a number of events that Ordinals deliver extra “monetary use circumstances to Bitcoin.”

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