Leading non-fungible token trading platform, the Magic Eden Ordinals marketplace announced on October 22 that it would pause trading of BRC-20 tokens. The firm called this a precautionary measure to protect its users while a complete consensus on Ordinals Inscriptions is reached.
Upgrades Pushed Miners’ Revenue to Record Highs
The usage of the Bitcoin BRC-20 protocol and Ordinals Inscriptions surged to record highs when they were introduced, but now the situation has made a 180-degree turn. Bitcoin miners who enjoyed a significant amount of transaction fees via BRC-20 tokens have taken a hit despite the increased excitement these new upgrades initially brought.
Interestingly, the Bitcoin BRC-20 standard and Ordinals Inscriptions debuted after the November 2021 Taproot upgrade. The excitement surrounding the new upgrade pushed the BTC price to its all-time high of $69,000.
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BRC-20 Usage on a Decline
Interestingly, the situation seems to be changing. As per data from Dune Analytics, BRC-20 transactions recorded a massive peak of well above 400,000 transactions. However, in October, the number was significantly reduced to 1,000.
In September, BRC-20 transactions accounted for over 60% of the total transactions on the Bitcoin network, contributing to more than 30% of the fees collected by the network. The chart below from Dune Analytics confirms this data:
As of October, BRC-20 transactions represent less than 2% of the overall BTC transactions, with these transactions contributing to less than 1% of the fees collected by the Bitcoin network. On the other hand, Ordinal Inscriptions also face a similar decline after soaring adoption rates earlier this year.
Related reading: Bitcoin Developers Community In Heated Debates Over Ordinals
Dune Analytics data reveals a previous significant surge in Ordinal Inscriptions, peaking at 400,000 in September. However, there has been a notable decline recently, with daily inscriptions now standing at less than 6,000. Concurrently, daily fees have dropped from 8 BTC in September to under 1 BTC presently.
Interestingly, the Ordinals Inscriptions saw a shocking daily fee peak of over 257 BTC in May 2023.
Magic Eden Ordinals Marketplace Following a Trend?
The decision taken by Magic Eden seems to be part of a broader trend. Additionally, Bitcoin dominance surged to a two-year high, according to The Block’s data dashboard. The dominance level moved from approximately 38% at the start of this year to 48.85% on October 21, marking its highest level since April 2021.
At the time of writing, Bitcoin dominance was sitting at %52.25.