Bitcoin NFTs decline significantly – Ordinals platform proposes a solution
|- Bitcoin Ordinals launchpad Luminex proposed the BRC-69 standard to reduce inscription costs.
- The BRC-69 standard has been devised to utilize the Recursive Inscriptions introduced by developers last month.
- This is expected to trigger an increase in interest in Ordinals after BRC-20 transactions observed a 62% decline in the last month and a half.
Bitcoin made headlines over the past couple of weeks for joining the NFT market thanks to the Ordinals inscriptions, which enabled the BRC-20 standard. However, this hype was short-lived in comparison to the general life of any trend in the crypto space. Now a new BRC standard is expected to resuscitate the traders' interest in Bitcoin NFTs and more.
Bitcoin to get a new BRC standard
Bitcoin Ordinals launchpad Luminex proposed the development of a new standard called BRC-69 on Monday. This new standard is said to utilize Recursive Inscription to optimize the costs of inscribing on Bitcoin using the Ordinals protocol. Recursive Inscriptions were introduced by Ordinals developers last month to solve the issue of block size limitation.
Using these inscriptions, the BRC-69 standard will not only preserve the on-chain resources but also optimize 90% of the block space. This, in turn, would lead to lesser size and lower network fees.
Over the past weeks, BRC-20 transactions noted a significant decline as investors began straying further away from participating on-chain. The reasons for this varied, as many users complained of their transactions being stuck or ending up remaining unconfirmed. Reports of high transaction fees also emerged during this duration, with many claiming to pay over $40 to process a BRC-20 transaction.
This impacted the overall usage resulting in transactions falling by over 62% in the span of a month and a half. From an average of 123k transactions in May, the figures fell to 46k at the time of writing. In the same duration, a total of $42.2 million worth of BTC was paid by users in fees.
BRC-20 transaction
Thus if the proposal is accepted by developers and BRC-69 comes into existence, the cost of use could significantly reduce. Consequently, investors' interest in Bitcoin NFTs and Ordinals might also revive.
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