Major cryptocurrency exchange Binance has announced plans to introduce Bitcoin Ordinals NFTs to its NFT marketplace by the end of this month. This move aspires to broaden the marketplace’s multi-chain ecosystem.
Through the Taproot soft fork, Bitcoin Ordinals allows individuals to embed NFTs within the witness sections of Bitcoin transactions.
These inscribed NFTs can take various forms, such as videos, images, texts or codes. They also serve the purpose of assigning numbers to satoshis, the smallest units of $BTC on the Bitcoin network.
Binance NFT’s forthcoming integration of Bitcoin Ordinals will allow users to buy and sell these NFTs directly through their Binance accounts, eliminating the need for an additional wallet that supports inscriptions.
This integration by the cryptocurrency platform aims to deliver a smooth, protected and streamlined trading experience for users.
This streamlined approach simplifies the process for users, eliminating the need to establish a taproot-compatible Bitcoin wallet, which was previously required for purchasing Yuga Labs’ TwelveFold Ordinals.
Ordinals have allowed for unique NFT-style collections to be inscribed on the #Bitcoin blockchain.
Find out more, including how to collaborate with us to get your collections added ⤵️ https://t.co/aT5oiawHix
— Binance (@binance) May 9, 2023
Surge of inscriptions for Bitcoin ordinals, marketplace demands
Recent data indicate a significant surge in the number of inscriptions for Bitcoin ordinals in recent months. On April 2, the count of Bitcoin ordinal inscriptions reached 58,179, marking an 83.5 percent increase compared to the previous month. By May 1, the number of inscriptions for Bitcoin ordinals had surpassed 3 million.
Based on the information provided by Dune Analytics, the number of inscriptions has now exceeded 5 million. In the past week alone, the total count of inscriptions has more than doubled from 2.5 million. This rise indicates a remarkable increase in activity and adoption of inscriptions within a short timeframe.
Dune Analytics data reveal that most Bitcoin ordinal inscriptions consisted of text-based inscriptions, which adhered to the BRC-20 token standard.
Currently, text-based inscriptions are dominant, with a share of 86.52 percent. Conversely, image-based inscriptions have a relatively smaller presence, accounting for approximately 9.5 percent of the total inscriptions.
The demand for marketplaces to embrace Bitcoin NFTs is rapidly increasing. This growing interest was exemplified in late April another cryptocurrency exchange OKX had already revealed its plans to introduce Bitcoin ordinals to its marketplace and wallet ecosystem.
Initially, OKX users were able to view and store ordinals through their accounts, with the possibility of minting ordinals being alluded to by OKX chief marketing officer Haider Rafique in the future.
In March, NFT marketplace Magic Eden integrated support for Ordinals by incorporating Bitcoin wallets Hiro and Xverse. In April, the marketplace introduced a creator launchpad, streamlining the inscription minting process for artists and helping them list their creations on the secondary marketplace.
Binance NFT to offer royalty support, rise in transaction fees
Alongside integrating Ordinals into the Binance NFT marketplace, the world’s largest centralized cryptocurrency exchange revealed plans to provide royalty support and introduce further avenues for creators to generate revenue.
The exchange also has committed to providing exclusive benefits to creators who express interest in participating in a dedicated registration event associated with the upcoming integration. Creators in the Binance NFT marketplace may receive airdrops and allowlist opportunities.
The increased interest in Ordinals has led to a surge in activity on the Bitcoin network, resulting in new transaction volume records. However, this also raises concerns about congestion and high transaction fees.
So far, the demand for block space on the Bitcoin network has caused transaction fees to skyrocket to around $31, a level not seen since April 2021, according to data from BitInfoCharts.