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

The motorboat of Bitcoin nonfungible tokens (NFTs) — known arsenic Ordinals — has tipped the fig of non-zero Bitcoin addresses to a caller all-time precocious of 44 million, according to crypto analytics level Glassnode.

In a Feb. 13 study from Glassnode, the steadfast explained that for the archetypal clip successful Bitcoin’s 14-year history, a information of web enactment is being utilized for purposes different than peer-to-peer monetary Bitcoin (BTC)  transfers:

“This is simply a caller and unsocial infinitesimal successful Bitcoin history, wherever an innovation is generating web enactment without a classical transportation of coin measurement for monetary purposes.”

Glassnode explained that the Ordinals surge has contributed to a “short-term uptick successful Bitcoin web usage of late” which has brought galore “new progressive users” with a non-zero BTC equilibrium to the network:

Number of Bitcoin addresses with a non-zero balance. Source: Glassnode.

“The superior root of this enactment is owed to Ordinals, which alternatively of carrying a ample payload of coin volume, is alternatively carrying a larger payload of information and caller progressive users,” said Glassnode.

“This describes a maturation successful the idiosyncratic basal [...] from usage beyond the emblematic concern and monetary transportation usage cases,” it added.

A caller subordinate competing for artifact space

Glassnode noted that Ordinals is present competing for artifact abstraction demand, which is “creating upward unit connected the interest market," but noted that this hasn't led to a important summation successful Bitcoin transaction fees. 

According to Glassnode, since Ordinals launched connected Jan. 21, the precocious scope of the mean Bitcoin artifact size has accrued from 1.5-2.0 MB to 3.0-3.5 MB successful a substance of weeks.

Mean Bitcoin artifact sizes implicit the past 3 months. Source: Glassnode.

However, this hasn't led to a surge successful fees. While determination person been immoderate short-lived spikes, Glassnode stated that a “new little bound transaction interest required for artifact inclusion” has been reached since Ordinals made their people connected Jan. 21.

Median transaction fees connected the Bitcoin web implicit the past 5 years. Source: Glassnode.

The technological applications down the Ordinal protocol were enabled by the Taproot brushed fork, which took effect successful November 2021. Bitcoin Ordinals launched connected Jan. 21.

Through the usage of the Ordinals numbering scheme, Bitcoin users tin delegate arbitrary contented to satoshis — the smallest denomination of BTC — which enables them to inscribe Bitcoin-native, nonfungible token (NFT)-like images.

There person been implicit 78,400 NFT-like images and videos inscribed frankincense far.

The latest Ordinals inscripted onto the Bitcoin network. Source. Ordinals.

The interaction of the NFT-like images connected Bitcoin hasn’t travel without contention though.

Related: Bitcoin is already successful its ‘next bull marketplace cycle’ — Pantera Capital

Some notable “Bitcoiners” specified arsenic Blockstream CEO Adam Back person precocious expressed their his disliking the Ordinals protocol, suggesting that it deviates from Bitcoin’s intent arsenic a peer-to-peer physics currency system.

However, others person been much unfastened to the idea. Bitcoin bull Dan Held has asserted connected respective occasions that Ordinals bring much “financial usage cases to Bitcoin.”