- Magic Eden on Bitcoin to suspend BRC-20 trading.
- BRC-20 transactions and ordinal registrations have declined in recent weeks.
The emergence of Ordinal registrations And BRC-20 tokens have generated considerable enthusiasm within the Bitcoin [BTC] community, leading to higher revenues for miners due to increased transaction fees.
Nevertheless, the influence of these Bitcoin innovations appears to be diminishing, as a major market has temporarily halted trading of BRC-20 tokens.
BRC-20 exchanges suspended
In an important announcement made on October 22, Magic Eden on Bitcoin revealed a temporary suspension of Negotiation of the BRC-20. The platform explained that this suspension is a precautionary measure aimed at protecting users while awaiting full consensus on Ordinal registrations.
Ordinal registrations became possible with the November 2021 Taproot upgrade and serve as the technology underlying the functionality of the BRC-20.
BRC-20 tokens rely on ordinal JavaScript Object Notation (JSON) inscriptions to execute token contracts, generate new tokens, and transfer tokens.
These innovations had previously contributed to increasing BTC transaction fees, but the current landscape appears to be changing.
BRC-20 transactions decline
Data from Dune analysis reveals that in September, BRC-20 saw an impressive spike of 400,000 transactions. In the same month, BRC-20 transactions accounted for over 60% of total BTC transactions. Additionally, the volume of these transactions contributed to over 30% of the fees collected by the Bitcoin network.
However, the situation has changed dramatically at present. The total number of BRC-20 transactions has fallen to around 1,000, which represents less than 2% of total BTC transactions.
Additionally, the contribution of BRC-20 transactions to BTC fees has fallen to less than 1%. Unfortunately, Ordinal Inscriptions did not do any better in this regard.
Registrations for daily ordinals decrease with fees
Dune analysis the data showed that Ordinal registrations also experienced a significant decline. In September, daily registrations reached an impressive peak of over 400,000.
How many are 1,10,100 BTC worth today?
However, at present, the number of daily registrations has fallen to less than 6,000. Furthermore, the fees paid for these registrations have seen a substantial drop, from around 8 BTC in September to less than 1 BTC .
The decline in BRC-20 and Ordinals registrations, as illustrated by Dune Analytics metrics, suggests that Magic Eden’s decision may be part of a larger trend. But it is in the days and weeks to come that we will see to what extent their influence has diminished.