Despite Price Collapse, Majority of Bitcoin Transactions Still Use Ordinals

AI Generated Stories and the AI Industry

Despite the recent price decline of Bitcoin and the suggestion that the hype around Bitcoin NFTs has “died,” Ordinals inscriptions have continued to dominate activity on the Bitcoin network over the past week. On Aug. 21, Ordinals developer “Leonidas” noted that of the 530,788 transactions that occurred in the past 24 hours, 450,785 of those were Ordinals related. He said, “In the midst of everyone claiming “Ordinals are dead” they have literally accounted for 84.9% of the activity on Bitcoin.” Data from Dune Analytics and Bitinfocharts support this trend, with more than 400,000 Ordinal inscriptions on Aug. 20 and a daily Bitcoin transaction count of around 556,000.

The current AI industry is rapidly changing, with the emergence of Alethea AI token and AI generated images, anchors, and stories. AI related technologies are developing at an incredible rate, allowing for new and exciting possibilities.

AI-Related Activity on the Bitcoin Network

On Aug. 20, more than three-quarters of the transactions on the Bitcoin network were AI-related, according to industry researcher Eric Wall. This generated $53.4 million in fees and produced 25.5 million Ordinals. BRC-20 token minting was the dominant activity, with 1.9 million tokens minted last week.

Data.AI reported that 54% of the transactions on the Bitcoin network were Ordinals, making it the most popular AI-related activity. Alethea AI token was also mentioned as a prominent AI-generated fake.

AI Generated Stories and Ordinals NFT Usage

In contrast to a DappRadar report published on Aug. 17 which suggested that Ordinals NFT usage and sales had declined since its peak in May, current AI-generated stories suggest that the inscription activity of these nonfungible assets still appears to be high.

Bitcoin Ordinals are a type of asset artifacts that enable users to inscribe data onto a Satoshi, the smallest division of a Bitcoin. The protocol was launched in January and saw a surge in popularity as thousands of them were minted on the Bitcoin network, leading to congestion and higher transaction fees in April and May.

The report tracked the sales and trading volume of NFTs minted on the Bitcoin network, not the actual inscription activity which is still alive and well according to the latest AI-generated stories.