The number of non-fungible tokens (NFTs) tied to the Bitcoin blockchain surged to over 3 million earlier this week after a day’s surge in activity that consisted mostly of text-based assets, data from Dune Analytics shows.
Dubbed as inscriptions, the tokens operate on the Ordinals protocol, which allows users to embed data on the bitcoin blockchain by inscribing references to digital art into small bitcoin-based transactions.
The jump follows the launch of the Bitcoin Request for Comment (BRC-20) token standard, which allows users to issue transferable tokens directly over the network. This resulted in a collection of digital artwork and meme tokens based on Bitcoin. The market cap of the latter category rose to $137 million on Tuesday.
Still, most of the inscriptions are text-based, as data shows. These cost a lot less than digital art or meme coins as network fees depend on the amount of data enrolled.
As of Monday, over 372,000 unique inscriptions were recorded on the Bitcoin blockchain, 371,000 of which were text-based. Only 316 image-based inscriptions were created, the rest were applications or tokens.
The creators paid a total of 28 bitcoin (BTC) in fees to create the enrollments, which is on top of the nearly 284 bitcoin in lifetime fees generated by Ordinals’ activity. That’s over $8 million at current prices.
Meanwhile, prices for tokens focused on utilizing the Bitcoin ecosystem surged as enrollments surged.
Stacks’ stx (STX) token is up over 12% over the past 24 hours, outperforming the CoinDesk Market Index (CMI), which tracks the broader crypto market, which was up just 1.2%.
Stacks is a so-called Layer 2 companion chain for smart contracts with a focus on Bitcoin, which enables the creation of related financial products. Crypto funds like North Rock say Stacks offers several advantages over blockchain platforms like Ethereum, including lower fees, faster transaction times, and improved security.
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