The launch of the non-fungible token protocol, Ordinals has provoked commission growth on Bitcoin and tripled its mining profitability. The transaction fees on the Bitcoin network increased by 2.5 times and tripled the profits of the miners.
The Ordinals protocol allows NFT storage over Bitcoin. It was launched on January 21 this year and within two weeks the average commission over the network has gone up by 122%. The Ordinals allow the users to etch data in images, plus various media types.
On-chain analytics have said that the average transaction fee of Bitcoin has amounted to 0.000075 BTC ($1.7) as of the 7th of this month. On January 29, it was $0.767. BTC’s quotes also showed an interesting rise immediately after the NFT protocol block was launched. Coingecko gained 11% on January 21 and reached over $23,000. Later Bitcoin showed only growth, rising to over $4,000 on February 2.
The mining profitability of Bitcoin also showed a northward trend. On January 29 miners of Bitcoin earned around 0.83 BTC (around $18,800) from transaction fees and on the 7th of this month there was a 3-fold rise in the figures as it rose to around $55,300 or 2.442 BTC. The NFT protocol block space was made possible by SegWit and Taproot, two soft fork advancements of the Bitcoin Network of 2017 and 2020.
Ordinals Bring Real Scarcity To Collectibles
Experts have pointed out that the non-fungible token community has shown a shift towards Bitcoin, as Ordinals have brought real scarcity to the collectibles. The advent of the NFT coincides with a jump in the size of the mean block of Bitcoin from the normal average block size of 1.5 to 2 MB to between 3 and 3.5 MB this month.
On several occasions, the data of Ordinals have comprised more than 50% of the block space of BTC, revealed BitMEX Research. Experts believe that if Bitcoin Ordinals succeed in taking off, which they believe it will, it could mean good news for the revenue of BTC miners, something that is yet to show up in their valuation.