Bitcoin [BTC] ordinals are being examined, but traders remain optimistic

• Bitcoin Ordinals are criticized by few in the crypto industry. Despite the criticism, interest in Ordinals remains high.
• Traders remain bullish as sell ratio falls.

In recent months, the introduction of Ordinals and Inscriptions on Bitcoin [BTC] network has breathed new life into the protocol. With increasing activity, resulting in high fees generated by the miners, overall sentiment remained positive around BTC’s latest developments.

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A lot 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, according to him, the technology supporting Ordinals is “deeply flawed” and does not conform to “the axioms of the core Bitcoin community.”

Rubboli also expressed concern that Ordinals may draw more regulatory scrutiny to Bitcoin. This was because the new BRC-20 tokens could be considered unregulated securities.

Although there was some backlash from Bitcoin “purists” regarding the introduction of inscriptions, many came out in support of the technology.

Alex Strzesniewski, the founder of AngleBlock, expressed that it is not appropriate for any platform to engage in censoring transactions and deciding which ones are considered “valid” or “invalid”.

Interest surrounding Ordinals remained largely unaffected by these comments. Data from Dune Analytics indicated that the volume of Ordinal transactions continued to increase in recent days.

Source: Dune Analytics

At press time, 87.7% of all Inscription transaction activity will be attributed to text-based inscriptions. Image-based inscriptions accounted for 8.2% of the total activity.

This increase in ordinary activity led to an increase in fees paid to the miners as well. Due to all these factors, the positive sentiment around Bitcoin started to rise.

In addition, activity on the network began to increase as well.

Source: Sentiment

The trade-off

Traders have started showing bullish sentiment towards BTC. This was revealed by the falling put-to-call ratio.

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A decline in the put-to-call ratio means that there are fewer put options compared to call options, showing that more traders are betting on a bullish price movement for Bitcoin.

At press time, 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 play out in their favor.

Source: The Block