The Ordinals protocol enabled NFTs and BRC-20 tokens on the Bitcoin network. It used to be a single asset network.
However, the issue has sparked controversy, with some critics pointing to high transaction fees and bloated chains. Proponents, by contrast, argue that the concept of permissionlessness also includes the freedom to use Bitcoin freely.
The Glassnode data was analyzed by crypto slate The Ordinals Protocol has revealed that the good times are back for miners.
bitcoin miner hash price
Miner Hash Price refers to the ratio of daily earnings to mining hash rate, showing the earnings generated on an Exahash (EH/s) basis. As an ongoing concern, we can measure a miner’s “comfort” in relation to other miners.
The chart below shows that minor hash prices have surged since May and are approaching the one-year high last seen in June 2022. Prior to this, minor hash prices had been on a downward trend for two years, followed by a continual decline after a brief pause due to the implosion of Terra LUNA. After about 4 months, it started to decline.
Miners are benefiting because their daily income is increasing relative to their mining contributions and the average cost of Bitcoin production is falling.
Percentage of mined supply for miners
Percent of mined supply used by miners refers to an estimate of the percentage of mined supply used by miners in a 30-day window.
The model compares 30-day changes in miner balances with 30-day total issuance to determine the percentage of mined coins spent, giving us three variables at a given point in time:
- 100% – indicates that the amount of coins mined is equal to the total mined supply used in the aggregate.
- Less than 100% – Miners keep a portion of the mined supply as a Treasury Reserve.
- Over 100% – Miners are distributing more coins than mined supply, resulting in the depletion of Treasury reserves.
The chart below shows that the miner balance (minus Patoshi) is currently at 729,554 BTC. While this is significantly less than the July 2022 peak of 750,000 BTC, the balance shows a notable rise from the December 2022 low of 722,000 BTC.
Additionally, the year-to-date pattern has been trending upward overall, indicating that miners are confident of future price appreciation and are holding mined coins as balance sheet assets rather than selling them. I like it.
Patoshi is a coin mined by Satoshi Nakamoto when he was actively involved in Bitcoin development. According to on-chain data, he holds 1,096,000 coins, which remain untouched.
Combined with analysis suggesting that miner capitulation occurred last year, CryptoSlate expects the upward trend in miner balances to continue, with favorable times ahead for miners.
Ordinal impact summary for the past week
Since earlier this week, memecoin enthusiasts have seen the BRC-20 token drive transaction fees to a 24-month high.
Similarly, memecoin FOMO pushed BRC-20 market cap above $1 billion on May 8th. However, it then saw a significant drop due to extreme downside volatility.As a result, his current BRC-20 market cap is $735.6 million.
The number of inscriptions, digital artifacts inscribed on the Bitcoin blockchain, has approached 5 million, resulting in miners earning a cumulative 904 BTC in fees.
Research: Ordinals, a post about BRC-20 bringing economic benefits to Bitcoin miners, first appeared on CryptoSlate.