Bitcoin Ordinals and How It Relates to Recent Miner Interest: Decoding…

by James · March 1, 2023

Bitcoin’s hashrate hit a new all-time high on February 26.
Daily active users have increased in recent weeks, and other metrics were positive.

Bitcoin [BTC] Ordinals crossed the benchmark of successfully entering over 200,000 NFTs. This milestone was reached quickly, as it has only been a couple of months since Ordinal’s launch. The total Ordinals inscribed at the time of writing was 207,269, with image-type ordinals accounting for the lion’s share, followed by text.

Read Bitcoins [BTC] Price prediction 2023-24

However, it was interesting to note that the volume registered a decline after entering the highest number of Ordinals on February 9.

Source: Dune

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Ordinals that invite new miners into the network

While several NFTs were characterized in recent weeks, BTCThe mining industry’s mining industry witnessed growth as the hash rate reached a new all-time high on February 26, 2023. The increase in hash rate reflected an influx of new miners into the network, and Ordinals may have played an important role in promoting this hike.

Source: Glassnode

One possible reason for miners’ interest in Ordinals could be the impact it had on BTC’s price. As BTC’s price increased, the revenue generated by mining became more lucrative, resulting in an increase in the number of miners. As the hashrate reached a new ATH, it was clear that miners were bullish on BTC and by extension Ordinals.

BTC stepped up on the metrics front

In accordance Glass node, BTC’s Taproot leverage reached an all-time high a few days ago, thanks to Ordinals, which used the protocol for inscription. As Ordinals’ popularity skyrocketed, so did the use and adoption of BTC Taproot. Not only this, but Bitcoin NFTs also had an effect on the network’s usage, which was evident from Santiment’s data.

For example, BTCthe number of transactions has increased in recent weeks. Furthermore, BTC’s daily active addresses followed a similar pattern and increased. Both of these uptrends can be attributed to the growing popularity of Ordinals.

Source: Sentiment

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Will Ordinal’s performance be reflected on BTC’s chart?

As Ordinal’s popularity and inscription continue to increase, the chances of this development are reflected BTC‘s chart cannot be underestimated. CryotoQuants data revealed quite a few key figures that suggested BTC could break the resistance near the $25,000 zone in the days to follow.

The derivatives market remained bullish on BTC as its bid-ask ratio indicated that buying sentiment was dominant. BTC’s funding rate also looked upbeat, increasing the chances of a price uptrend. Also, BTC’s currency reserve was on the decline, which is a positive sign as it indicates less selling pressure. At press time, BTC was trading at $23,371.22 with a market capitalization of more than $451 billion.