The introduction of the Ordinals protocol in 2023, which allows the transmission of digital assets like NFTs (similar to ERC-721) and quasi-tokens (similar to ERC-20) by numbering satoshis, led to a surge in meme coins according to CoinFactiva.com analysts’ review.
However, a year later, the hype around meme coins faded, and transaction fees returned to the range of $0.5-$2.
This calm was short-lived as a new surge in meme coins within the Bitcoin network began in April.
In the overall rankings, the top two collections are now occupied by Ordinals from Bitcoin, displacing both Solana and Ethereum.
Due to Bitcoin’s network limitations, the significant increase in transactions has led to a rise in fees. Currently, a simple transfer could cost around $10, and this figure is likely to rise further due to the approaching halving.
The peak in commission costs is expected on the halving day (around April 19th) as digital assets minted in the first block of the new era gain collectible value. Despite the excitement around Ordinals, it doesn’t significantly affect Bitcoin’s price.
Miners, on the other hand, are the main beneficiaries of the frenzy, as their earnings increase significantly due to the network’s congestion.
Yesterday, the share of transaction processing income rose to 28.5% of the block reward. In addition to the 6.25 BTC reward for the block, some miners received 1.78 BTC for including transactions in it.
For crypto miners, Ordinals could serve as a valuable asset, helping to maintain relatively high incomes after the halving.
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