- Magic Eden on Bitcoin to suspend BRC-20 trading.
- BRC-20 transactions and Ordinals Inscriptions have declined over the past few weeks.
The emergence of Ordinal Inscriptions and BRC-20 tokens created significant excitement within the Bitcoin [BTC] community, leading to higher earnings for miners due to increased transaction fees.
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Nevertheless, the influence of these Bitcoin innovations appears to be waning, as a major marketplace has temporarily halted the trading of BRC-20 tokens.
BRC-20 trading placed on hold
In a significant announcement made on 22 October, Magic Eden on Bitcoin revealed a temporary suspension of BRC-20 trading. The platform explained that this suspension is a precautionary measure to safeguard users while awaiting a complete consensus on Ordinals Inscriptions.
Ordinals Inscriptions became possible due to the November 2021 Taproot upgrade and serve as the underlying technology for BRC-20’s functionality.
These innovations had previously contributed to increased BTC transaction fees, but the current landscape appears to be evolving.
BRC-20 transactions declines
Data from Dune Analytics reveals that in September, BRC-20 experienced an impressive peak of 400,000 transactions. During that same month, BRC-20 transactions accounted for over 60% of the total BTC transactions. Additionally, the volume of these transactions contributed to more than 30% of the fees collected by the Bitcoin network.
However, the situation has drastically changed as of the current moment. The total BRC-20 transactions have dwindled to approximately 1,000, representing less than 2% of the overall BTC transactions.
Furthermore, the contribution of BRC-20 transactions to BTC fees has dropped to less than 1%. Unfortunately, Ordinal Inscriptions hasn’t fared any better in this regard.
Daily Ordinals Inscriptions drop with fees
Dune Analytics data showed that Ordinal Inscriptions have experienced a significant decline as well. In September, the daily inscriptions reached an impressive peak of over 400,000.
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However, at present, daily inscriptions have decreased to less than 6,000. Furthermore, the fees paid for these inscriptions have seen a substantial drop, plummeting from around 8 BTC in September to less than 1 BTC.
The decline in BRC-20 and Ordinals Inscriptions, as illustrated by Dune Analytics metrics, suggests that Magic Eden’s decision may have been part of a larger trend. However, it will be in the coming days and weeks that we will see the full extent to which their influence has diminished.