In Week 8’s weekly report, we talked about the birth of Bitcoin Ordinal Inscriptions and some on-chain information. This year is also a very important year for the Bitcoin network. From Ordinals to BRC-20, a variety of derivative applications are also involved. It has affected the activity of Bitcoin on the chain and the usage and value of the entire encryption market.

Figure 1a: Bitcoin Active Addresses (@CryptoQuant)

Figure 1b: Bitcoin Transaction Count (@CryptoQuant)

The first thing we see is the activity status of Bitcoin on the chain. Here we take two representative data for analysis, "Active Addresses" and "Transaction Count". We can see that currently The "number of active addresses" is much higher than the number of addresses in 2021/11, indicating that to a certain extent, the demand for influx into the Bitcoin market has increased, but unfortunately, it is still lower than the peak of the bull market in 2021/04 , indicating that investors are hesitant and cautious and have not fully recovered to the extent of having confidence in this market.

The "Transaction Count" shows a higher number of transactions than all the peaks of the bull market in 2021. This is mainly due to the blessing of Ordinals and BRC-20. Then we can draw a small conclusion. The influx of addresses is not too many, but the number of transactions has soared. We can deduce that the increase in the number of transactions on the Bitcoin network is very likely. It is the contribution of experienced investors who stay in this market.

Figure 2a: Ethereum Active Addresses (@CryptoQuant)

Figure 2b: Ethereum Transaction Count (@CryptoQuant)

After looking at the activity status of Bitcoin on the chain, let’s look at the Ethereum network again. Similarly, we choose “Active Addresses” and “Transaction Count” for analysis. No matter which of these two data is One, since the bull market reached its peak in 2021, it has not exceeded the previous high again. It has been in a downward channel, and its activity on the chain is getting lower and lower. It does not feel like a bull market recovery. With Bitcoin is really two completely different styles. This also clearly shows the dominance and influence of Bitcoin.

Ordinals and BRC-20, which have Buff functions on the Bitcoin network, have no supporting effect at all on the Ethereum network. The only thing that has slightly improved is the price of Ethereum, but there has been no increase as the demand for use continues to be sluggish. Under such circumstances, the price increase is most likely driven by futures contracts, but in the long run, this is not what a healthy crypto market should look like.

Figure 3: ETH/BTC Price & Open Interest (@TradingView)

Based on the on-chain analysis conclusions in the previous two paragraphs, Bitcoin’s on-chain activity during this period was stronger than that of the Ethereum network. This is of course also reflected in the exchange rate of ETH/BTC. We can see that between Ordinals and BRC-20 Two timelines later, the price performance of ETH was weaker than that of BTC, which once caused the ETH/BTC exchange rate to fall by 15 percentage points. In terms of perpetual contract positions, Bitcoin positions also increased by 7.99 B. Far exceeding Ethereum’s 3.76B.

Figure 4a: Bitcoin Ordinals Inscriptions (@Dune)

Figure 4b: Bitcoin Ordinals Fees Paid (@Dune)

Figure 4c: Bitcoin Ordinals by Type (@Dune)

Next, let’s talk about Bitcoin Ordinals. Since the beginning of this year, Bitcoin’s Ordinals Inscriptions have grown exponentially, and the accumulated Inscriptions have also reached a considerable number of 5,632,080. Especially since April, due to the rise of BRC-20 tokens , and also affects the number of Ordinals in Bitcoin.

In terms of transaction fees, the cumulative fees have also reached 1,158.2871 Bitcoins, a considerable amount of 29,956,917 US dollars. In terms of daily changes, like Inscriptions, they have shown exponential growth.

Finally, let’s see a more interesting number. As mentioned before, Bitcoin’s Ordinals Inscriptions are similar to the non-fungible tokens NFT on the Ethereum network. They can be used to store text, images, videos, etc., while on the Bitcoin network Among Lu's NFTs, text forms account for the most use, followed by images.

Figure 5a: BRC-20 Txs (@Dune)

Figure 5b: BTC Transactions (@Dune)

Figure 5c: BTC Transactions Fee (@Dune)

Next, let’s look at the data of BRC-20. After the advent of BRC-20 on 03/08, the number of transactions of BRC-20 did not increase significantly until the end of March. After mid-April, a storm-like index began. type growth. Compared with other transactions on other Bitcoin networks, only BRC-20 has a significant increase after April, but this also affects the usage, congestion, and transaction fees of the entire network, and this It is also clearly reflected in the data in Figure 5c.

The last thing I want to talk about is that although Bitcoin has recently been used in a variety of ways, it seems that there are many new tricks and ways to play it, which has led to an improvement in its entire intrinsic value and an increase in its degree of use. It feels like it has begun to break away from the positioning of just digital gold and virtual storage currency, but in fact there are many tricks that have no practical applications behind them, and it can easily become a virtual gambling table for gamblers in the market, with no actual To support their market value, we still need to pay more careful attention to these details before investing in them.

#BTC#Bitcoin#Ordinals#Inscriptions#CryptoQuant#ActiveAddresses#TransactionCount#BRC20#Dune #NFT

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