- Bitcoin Ordinals are criticized by few in the crypto industry. Despite the criticism, interest in Ordinals remains high.
- Traders remain positive as the put-to-call ratio declines.
In recent months, the introduction of ordinal numbers and inscriptions on the Bitcoin has taken place [BTC] network has revived the protocol. With activity rising resulting in high fees generated by the miners, the overall sentiment around BTC’s recent development remained positive.
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Much to say
However, some prominent figures in the crypto space have begun to criticize this technology.
For example, Enrico Rubboli, CEO of Bitcoin’s layer-2 sidechain Mintlayer, informed Cointelegraph that he says the technology supporting Ordinals is “deeply flawed” and doesn’t align with the “axioms of the core Bitcoin community.”
Rubboli also expressed concern that Ordinals could receive more regulatory oversight of Bitcoin. This was because the new BRC-20 tokens could be considered unregulated securities.
While there was some backlash from Bitcoin “purists” regarding the introduction of tokens, many came forward to support the technology.
Alex Strzesniewski, AngleBlock’s founder, said it is not appropriate for any platform to censor transactions and determine which are considered “valid” or “invalid”.
Interest in Ordinals was largely unaffected by these comments. The data from Dune Analytics indicated that the volume of Ordinal transactions continued to increase over the past few days.
Source: Dune analysis
At the time of writing, 87.7% of all Inscription transaction activity is attributed to text-based inscriptions. Image-based inscriptions accounted for 8.2% of total activity.
This spike in ordinal activity also led to an increase in the fees paid to the miners. Due to all these factors, the positive sentiment around Bitcoin started to rise.
In addition, activity on the network also began to increase.
Source: Sentiment
The interaction
Traders are starting to show bullish sentiment towards BTC. This was reflected in the falling put-to-call ratio.
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A fall in the put-to-call ratio means there are fewer put options relative to call options, showing that more traders are betting on a bullish price move for Bitcoin.
At the time of writing, Bitcoin was trading at $26,371.99 and the price was down 3.81% according to CoinMarketCap. Only time will tell if traders’ optimism will work out in their favour.
Source: The Block