Non-fungible tokens (NFTs) have revolutionized the world of digital art and collecting in recent years. But most have been developed on the Ethereum blockchain. Now, a new technology called Ordinals is causing a sensation on the oldest and most secure crypto network, Bitcoin. These are native Bitcoin NFTs that allow representing unique digital assets directly on the blockchain.
In recent days, the trading volume of Ordinals NFTs has exploded, surpassing popular Ethereum collections like Bored Ape Yacht Club for the first time. According to CryptoSlam data, over the last 24 hours there were transactions worth $17.7 million with Bitcoin NFTs, a 44% increase over the previous day. In contrast, volume on Ethereum fell almost 8% to $13.5 million.
What accounts for this sudden interest in Ordinals? It seems to be a combination of technical and marketing factors. Recent statements by Elon Musk criticizing that Ethereum NFTs are not really on the blockchain sparked a wave of enthusiasm in the Bitcoin community to demonstrate that their native NFTs do solve that problem by storing multimedia files directly on the blockchain.
In addition, the Binance exchange has strongly supported the development of Ordinals, listing tokens and allowing trading on its platform. This gives them access to millions of users. Finally, launches like the Ordiverse metaverse and technical improvements to the protocol are attracting developers and investors.
Some of the NFTs that have seen the greatest growth in recent days include projects like SATS (up 372%), BISO (326%) and PIZA (321%). But not only non-fungible tokens are booming. BRC-20 tokens, fungible assets developed on Ordinals technology, are also recording spectacular increases.
For example, ORDI, the token used to pay fees on the Ordinals platform, jumped 50% in a few hours this week after being listed on Binance. And this seems only the beginning.
Advantages of NFTs on Bitcoin
Why are crypto enthusiasts so excited to bring NFTs to Bitcoin? There are several technical reasons. First, the Bitcoin network has the highest hash power and security in the crypto world. This provides guarantees for storing valuable digital assets.
Also, as Musk pointed out, on Ethereum NFTs tend to just be a link to an image hosted on an external server. In Bitcoin, multimedia files are stored directly on the blockchain, making the NFT authentically unique and irreplaceable.
Additionally, fees on Bitcoin are usually lower than on Ether, making it cheaper to create and trade NFTs. And they benefit from the liquidity and access to financial services of the Bitcoin ecosystem, such as exchanges, wallets, lending, etc.
The metaverse drives adoption
Beyond the technical advantages, the growing interest in the metaverse is also catapulting Bitcoin NFTs into stardom. Platforms like Ordinals allow not only tokenizing digital artworks, but also virtual lands, avatars, clothing, accessories and more.
In fact, Ordiverse was recently launched, a native Bitcoin metaverse where users can explore virtual worlds, socialize, create content and make transactions using BRC-20 tokens and Ordinals NFTs.
This is attracting major brands, celebrities and companies to issue digital assets on Bitcoin to reach this new audience and generate additional income.
For example, the Gucci fashion brand sold a limited virtual handbag for 20 BTC this week in Ordiverse. The band Depeche Mode will release an exclusive NFT collection for fans in the coming days. And companies like Nike and others are rumored to be planning to sell virtual goods on this platform.
The future of NFTs and the metaverse
With this initial explosion, many experts believe Bitcoin NFTs and metaverses are here to stay. They offer a differentiated proposition compared to Ethereum and help fulfill Bitcoin's original vision of being both a store of value and a medium of exchange.
They allow tokenizing all kinds of digital assets in a more secure, inexpensive and scalable way. And they open up endless opportunities for creating interoperable virtual worlds where users can express themselves, interact, trade and even work and study.
Of course, challenges remain ahead. The technology still needs to improve to achieve truly immersive experiences in metaverses. And there are doubts about the long-term sustainability of the stratospheric valuations that certain NFTs are reaching.
But with companies like Microsoft, Meta and crypto unicorns investing billions in metaverse development, everything indicates it's here to transform the digital economy. And platforms like Ordinals and Ordiverse have taken a leadership position, demonstrating that Bitcoin wants to be at the forefront of this innovation.
Whether to tokenize unique artworks, buy valuable virtual lands, or dress our avatars in the latest digital fashion trends, this NFT and metaverse fever on Bitcoin seems to be just beginning. The coming months will tell if this time the oldest crypto network can dethrone Ethereum as the preferred platform for the digital assets of the future.
Image owned and created by me. Generated with Photoshop.
