- The block size of ordinal numbers decreased as the text type of ordinal numbers took up the majority of the total number of inscriptions.
- The price of BTC could soon undergo a correction, as suggested by a few statistics.
Bitcoin [BTC] Ordinals came back into the limelight by registering a huge growth in terms of the number of enrollments. The number of daily registrations reached a record high of over 300,000 on May 1, bringing the total number of registrations to more than 3 million.
Source: Dune
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key stats look encouraging
A look at the proportion of different types of inscribed ordinals suggested that the majority of them were text type, accounting for 79%. According to Dunes factstext type Ordinals were followed by image type and others.
In addition, the increase in enrollments was also accompanied by a huge increase in Ordinals fees paid, which also reached a new ATH on May 2, 2023.
Source: Dune
Tom Wan, a research analyst, pointed out an interesting development. Despite the huge increase in the number of inscriptions, the average block size decreased.
6/ Block size decreases with dominating text type ordinal numbers
Despite reaching ATH in daily inscriptions, the average block size decreases from an ATH (2.52 MB on Feb 12) to 1.57 MB
Main cause: Size of image inscriptions > text inscriptions by ~7 times pic.twitter.com/g7EtW64dq2
— Tom Wan (@tomwanhh) May 2, 2023
The reason behind this decline was the dominance of the Ordinals text type. Because the size of the Ordinals text type is smaller than that of the Ordinals image type, the average block size of the ATH decreased from 2.5 MB to 1.57 MB.
Miners enjoyed the episode
Ordinals’ latest achievement also brought good news for miners. While Ordinal numbers hitting a new ATH, a walk in The hash rate of BTC was also seen, indicating an influx of new miners into the network.
Moreover, thanks to the increase in Ordinals’ fees, miners also generated more revenue. As shown by Glassnode’s chart, total miner earnings are in BTC registered a peak on May 1, 2023.
Source: Glassnode
Bitcoin investors should consider this
While things looked good for miners, the same cannot be said for investors. A look at BTC’s hash ribbon showed the possibility of the 60-day moving average (MA) reversing the 30-day MA.
Such a reversal suggests that the market is not suited for more accumulation. Therefore, when the flip happens, BTC may be subject to a price correction.
Source: Glassnode
Read Bitcoins [BTC] Price prediction 2023-24
The problem is real
from CryptoQuant facts revealed that at the time of writing, Bitcoin’s exchange rate reserve was increasing, indicating higher selling pressure. The increased selling pressure was also evidenced by BTC’s red aSORP, which indicated that more investors were selling at a profit.
In addition to that, BTCThe buyer’s buy/sell ratio indicated that selling sentiment was dominant in the derivatives market, which also sent a negative signal. According to CoinMarketCapBitcoin’s price is up nearly 2% in the last 24 hours and at the time of writing, it was trading at $28,481.10 with a market cap of over $551 billion.
Source: CryptoQuant
