{"id":20438,"date":"2023-02-13T19:30:57","date_gmt":"2023-02-14T03:30:57","guid":{"rendered":"https:\/\/coinnetworknews.com\/bitcoin-hits-record-44m-non-zero-addresses-thanks-to-ordinals-glassnode\/"},"modified":"2023-02-13T19:30:57","modified_gmt":"2023-02-14T03:30:57","slug":"bitcoin-hits-record-44m-non-zero-addresses-thanks-to-ordinals-glassnode","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/bitcoin-hits-record-44m-non-zero-addresses-thanks-to-ordinals-glassnode\/","title":{"rendered":"Bitcoin hits record 44M non-zero addresses, thanks to Ordinals: Glassnode"},"content":{"rendered":"
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The launch of Bitcoin nonfungible tokens (NFTs) \u2014 known as Ordinals \u2014 has tipped the number of non-zero Bitcoin addresses to a new all-time high of 44 million, according to crypto analytics platform Glassnode.<\/p>\n

In a Feb. 13 report from Glassnode, the firm explained<\/a> that for the first time in Bitcoin\u2019s 14-year history, a portion of network activity is being used for purposes other than peer-to-peer monetary Bitcoin (BTC)<\/a>\u00a0 transfers:<\/p>\n

\u201cThis is a new and unique moment in Bitcoin history, where an innovation is generating network activity without a classical transfer of coin volume for monetary purposes.\u201d<\/p><\/blockquote>\n

Glassnode explained that the Ordinals surge has contributed to a \u201cshort-term uptick in Bitcoin network usage of late\u201d which has brought many \u201cnew active users\u201d with a non-zero BTC balance to the network:<\/p>\n

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Bitcoin addresses with a non-zero balance is surging. Source:<\/em> <\/em>Glassnode<\/em><\/figcaption><\/figure>\n

\u201cThe primary source of this activity is due to Ordinals, which instead of carrying a large payload of coin volume, is instead carrying a larger payload of data and new active users,\u201d said Glassnode. <\/p>\n

\u201cThis describes a growth in the user base […] from usage beyond the typical investment and monetary transfer use cases,\u201d it added.<\/p>\n

A new player competing for block space<\/h3>\n

Glassnode noted that Ordinals is now competing for block space demand, which is \u201ccreating upward pressure on the fee market,\u201d but noted that this hasn\u2019t led to a significant increase in Bitcoin transaction fees.\u00a0<\/p>\n

According to Glassnode, since Ordinals launched on Jan. 21<\/a>,\u00a0the upper range of the mean Bitcoin block size has increased from 1.5-2.0 MB to 3.0-3.5 MB in a matter of weeks.<\/p>\n

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Mean Bitcoin block sizes over the last three months. Source:<\/em> <\/em>Glassnode<\/em><\/figcaption><\/figure>\n

However, this hasn’t led to a surge in fees.\u00a0While there have been some short-lived spikes, Glassnode stated that a \u201cnew lower bound transaction fee required for block inclusion\u201d has been reached since Ordinals made their mark on Jan. 21.<\/p>\n

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Median transaction fees on the Bitcoin network over the last five years. Source: <\/em>Glassnode<\/em><\/figcaption><\/figure>\n

The technological applications behind the Ordinal protocol were enabled by the Taproot soft fork<\/a>,\u00a0which took effect in November 2021. Bitcoin Ordinals launched on Jan. 21.<\/p>\n

Through the use of the Ordinals numbering scheme, Bitcoin users can assign arbitrary content to satoshis \u2014 the smallest denomination of BTC \u2014 which enables them to inscribe Bitcoin-native, nonfungible token (NFT)-like images.<\/p>\n

There have been over 78,400 NFT-like images and videos inscribed thus far.<\/p>\n

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The latest Ordinals inscripted onto the Bitcoin network. Source. <\/em>Ordinals<\/em><\/figcaption><\/figure>\n

The impact of the NFT-like images on Bitcoin hasn\u2019t come without controversy though.<\/p>\n

Related: <\/em><\/strong>Bitcoin is already in its \u2018next bull market cycle\u2019 \u2014 Pantera Capital <\/em><\/strong><\/a><\/p>\n

Some notable \u201cBitcoiners\u201d such as Blockstream CEO Adam Back have recently expressed their dislike for the Ordinals protocol,<\/a> suggesting that it deviates from Bitcoin\u2019s purpose as a peer-to-peer electronic cash system.<\/p>\n

However, others have been more open to the idea. Bitcoin bull Dan Held has asserted on several occasions that Ordinals bring more \u201cfinancial use cases to Bitcoin.\u201d<\/p>\n