TL;DR
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Since the invention of Bitcoin Ordinals in January this year, some big headlines have gone out and created something similar for other layer-1 blockchains like Litecoin and Dogecoin.
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As a result, daily transaction numbers are skyrocketing! (More things to buy/trade = buy/trade more).
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Litecoin transactions have increased from ~100,000 transactions on May 1 to a high of ~584,000 on May 10 with over 2.6 million Litecoin Ordinals subscribed to date.
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Dogecoin numbers are even more crazy. They have gone from ~17,000 transactions on May 1st to 1.2 million transactions on Saturday!
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While the rise of Ordinals on various Layer-1 blockchains isn’t great for congestion, we wouldn’t be surprised if this is here to stay
Full story
ICYMI, a little over a week ago we wrote about how there is a war going on among the Bitcoin community over Ordinals.
You can think of Bitcoin Ordinals as NFTs, but on the Bitcoin network instead of Ethereum or Solana, for example.
The Ordinals protocol allows you to link data to the Bitcoin network, including things like text, images, games, and even ‘Snapchat style live webcam filters.’
But the trend doesn’t stop there.
Since the invention of Bitcoin Ordinals in January this year, some big headlines have gone out and created something similar for other layer-1 blockchains like Litecoin and Dogecoin.
As a result, daily transaction numbers are skyrocketing!
(More things to buy/trade = buy/trade more).
According to data from BitInfoChartsLitecoin transactions have increased from ~100,000 transactions on May 1 to a high of ~584,000 on May 10, with over 2.6 million Litecoin Ordinals subscribed to date.
Dogecoin numbers are even more crazy. They have gone from ~17,000 transactions on May 1st to 1.2 million transactions on Saturday!
So what does all this mean?
Depends who you ask.
For example, in an interview with Decrypt this week, Dogecoin core developer, Patrick Lodersaid:
“Something like this can’t become a real ‘feature’ because it hasn’t been thought about enough…continued and growing pressure on Dogecoin will see it disappear soon.”
But we’re not so sure…
While the popularity of Ordinals is mainly based on meme coins, let’s not forget that before NFTs came with utility, NFTs were little more than a combination of JPEGs and hype.
The thing is, they started out as one thing, and then innovative people and projects took original NFTs in weird and wonderful directions.
(Think: generative NFTs, NFT gated access to communities/events etc.)
So while the emergence of Ordinals on various layer-1 blockchains isn’t great for congestion, we wouldn’t be surprised if this is here to stay – and for innovation to continue, perhaps even solving the congestion problems.
(At least, we hope it goes that way!)