Connect with us
Active Currencies 14913
Market Cap $2,457,921,671,874.50
Bitcoin Share 51.35%
24h Market Cap Change $-1.09

Bitcoin: If and why users are losing interest in Ordinals

2min Read

The transaction fees from Bitcoin Inscriptions started to fall recently.

Bitcoin: Are users losing interest in Ordinals? This data suggests…

Share this article

  • Bitcoin Inscription transaction fees took a dip.
  • Miner revenues started to decline while long-term holders continued to show support for BTC.

The introduction of Ordinals and Inscriptions took the Bitcoin[BTC] sector by storm as new use cases for the network emerged. This led to high activity on the Bitcoin network as well.

Is your portfolio green? Check out the Bitcoin Profit Calculator

Based on Glassnode’s data, the proportion of Bitcoin transaction fees attributed to Inscriptions remained relatively high at 26%. Also, out of 111 trading days, only 12 of them (10.8%) recorded a larger relative share of fees.

However, it was worth noting that the current fee dominance of Inscription transactions fell from its peak, during which they accounted for an astonishing 62% of all transaction fees.

Source: glassnode

Currently, the cumulative fees generated from Inscription transactions amounted to 1413 BTC, which was equivalent to approximately $38 million in revenue.

While the current fee dominance of Inscription transactions was lower than its peak, it still represents a notable share of transaction fees.

This implies that the specific activities or addresses associated with Inscription transactions remain relevant and continue to generate revenue on the network.

Source: glassnode

 The current state of miners

The declining fees generated by Inscriptions may have an impact on Bitcoin miners. Since Inscription transactions contribute a significant portion of transaction fees, a decrease in their share could potentially lead to a reduction in the overall fees received by miners.

Read Bitcoin’s Price Prediction 2023-2024

Miners rely on transaction fees as part of their revenue stream, in addition to block rewards, to incentivize their mining activities. If the fees generated by Inscription TXs decline, miners may experience a decrease in their total fee income.

At press time, daily miner revenue declined from $41.74 million to $23.375 million in the last few days.

Source: Blockchain

If this decline in revenue continues, the miners will be forced to sell their holdings to remain profitable. This would drive down the price of BTC even further.

Despite these factors, long-term holders continued to show faith in the king coin.

According to recent data, it was observed that long-term addresses holding Bitcoin reached an all-time high. These addresses are mostly unlikely to sell and succumb to selling pressure during volatile periods.


Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.