For some, the Ordinals craze wreaked havoc on the Bitcoin ecosystem. BTC price may have, so far, failed to capitalize, but that was not the case for network miners.
In fact, the evolution has been a blessing in disguise for them.
Bitcoin miner revenue soaring
This month was marked by skyrocketing transaction fees and network congestion as Bitcoin Ordinals reached unprecedented levels. While the bitcoin price is recovering cautiously with modest gains, the network’s increasingly high cost of transactions is potentially a welcome development for the mining industry, which has been under severe pressure over the past year.
In fact, bitcoin miners generated a total of $17.75 million in revenue on the 8th of May. According to the data Shared by Glassnode CTO Rafael Schultze-Kraft Such a sudden spike in mining revenue for a single day is rare.
happy # Bitcoin Miners.
$17.7 million USD earned through transaction fees – in one day.
📊https://t.co/HWoFWtrdkz pic.twitter.com/6Wc4PzDwx7
– Raphael Schultz-Kraft (@n3ocortex) May 9, 2023
Upon further measurement, it was found that Bitcoin transaction fees for May 8 rose to $31.14, a level last seen in April 2021.
The latest development also coincided with Ordinals paying transaction fees higher than mining rewards for the first time since 2017. As a result, several Bitcoin miners, including Luxor Technologies and AntPool, mined blocks where the fees exceeded Bitcoin’s block support of 6.25 BTC.
As Bitcoin Ordinals continues to rack up new milestones, a new achievement has come in the form of the number of daily inscriptions that has more than doubled in the span of just about ten days. Potato encryption I recently reported that there are now over 5.1 million ordinal inscriptions.
Text-type arrangements had the highest market share after the acquisition of its picture counterpart.
The surge in Ordinals transactions naturally increased mining activity and subsequent fees even though the price of the major cryptocurrency has yet to reflect the enthusiasm.
Recently, Binance, one of the most prominent cryptocurrency exchanges, announced plans to list Bitcoin NFTs on its platform.
Take Michael Saylor in the ranking
Not all Bitcoin advocates are happy with the remarkable success Ordinals has seen. However, Michael Saylor, longtime Bitcoin bull and co-founder of MicroStrategy, believes that the recent craze could be a catalyst for Bitcoin adoption.
in PBD PodcastDeveloping an app that drives up transaction fees — against the backdrop of bank failures, hyperinflation, and a lack of regulatory clarity hurting the asset class — is a catalyst, Saylor said.
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