The ongoing deployment of NFTs on the Bitcoin blockchain continues to spark heated debates. it appears the CryptoPunks have landed on the network under the Ordinal Punks banner. These assets rake up tremendous value, although none of it is putting much money in miners’ pockets.
The opinions on Ordinals will always remain divided. Some people enjoy the concept of on-chain NFTs on the most secure blockchain. Others consider it spam and bloat, fearing it will crowd out regular transactions. It is tough to determine which side is right, but the impact is minimal now.
Recent statistics confirm the average transaction fee rate for inscription transactions remains low. It has risen somewhat over the past week, going from 1 sat/vbyte to roughly 3. However, that still pales in comparison to regular transaction fee rates. Those remain close to 15 sats/vbyte.
As such, Ordinals and NFT minting have no immediate impact on transaction costs. Unfortunately, miners aren’t making much extra cash from these transactions either.
That situation may change as more collections hit the Bitcoin network, though. The recent addition of Ordinal Punks is interesting. Unlike CryptoPunks, this collection spans 100 assets, making it more scarce. Plus, they are on-chain assets, subjecting them to true digital ownership. Dingaling bought 7 of these Ordinal Punks for 15.2 BTC this week, and expects the prices to go much higher than that.
However, it appears some people have other intentions. The Ordinal Punks collection is the “cloned” version of CryptoPunks on Ethereum. It is a prominent selection, although it has yet to achieve significant price levels.
Even so, some people have worked out a way to bridge the Ordinal Punks back to Ethereum to sell them on OpenSea. A curious development, although there aren’t major marketplaces for on-chain Bitcoin inscriptions yet.
In addition, there have been several copycat collections on OpenSea already. There are Bitcoin Punks, Bitcoin Punk, etc. It will be tricky to determine which of these is the real deal, although interest users are better off buying on-chain over the Bitcoin network.
The one takeaway is there is a significant first-mover advantage for the first Ordinals NFT marketplace to hit the market. Demand for these assets may be short-lived, but there is a genuine demand for them today. In addition, there isn’t a negative network impact, even if these inscriptions aren’t everyone’s cup of tea.
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