Bitcoin Ordinals, which enabled the possibility of creating NFTs on the worlds biggest cryptocurrency network, is starting to weigh on the network. The increasing cost of transactions is a rising concern, which could inadvertently trigger a further decline in Bitcoin price.<\/p>\n
Since their origin of Ordinals and the introduction of the BRC-20 token standard in March of this year, Bitcoin-based meme coins have been rising. The meme coin fever had a grasp on the crypto market, too, for a while, thanks to PEPE and Milady tokens. As it took over Bitcoin too, issues began arising.<\/p>\n
Firstly, this triggered the developers, who were not happy because spam transactions were on the rise again after a brief deceleration. Spam transactions usually create unwanted load on the network and in particular to Bitcoin this is caused by the rising hype and demand surrounding BRC-20 tokens.<\/p>\n
The development of BRC-20-based meme coins is one of the leading causes of transactions running so high. A developer Ali Sherief even suggested banning spam transactions to protect the user base and minimize congestion on the network.<\/p>\n
Bitcoin Ordinals volume<\/p>\n
The proposal made sense, too, since the congestion caused due to spam transactions resulted in an increase in transaction fees. The average fee on the network touched $30 per transaction on May 8, the highest in two years and is currently averaging around $6.<\/p>\n
Bitcoin average transaction fees<\/p>\n
This needs to be controlled since the prospect of Bitcoin becoming a crucial part of the web3 space is drawing more users to Ordinals and BRC-20. The opportunities that come with it could propel Bitcoin into the forefront of web3. In line with the same Ordinals developer, Leonidas stated,<\/p>\n
Bitcoin is speedrunning its transition to Web3. Because we have the template of what works from other chains, things are moving so much faster. What Ethereum took 6 years to do, we are going to do in 6 months.<\/p>\n
Besides, with over 7 million inscriptions in two months, Bitcoin is growing pretty rapidly. This is visible in the network activity as well, which is at a record high at the moment. Over the last few days, daily transactions reached a high of 628,000 owing to the BRC-20 hype.<\/p>\n
Analyst Cryptonary, on Twitter, in regards to the congestion caused by BRC-20 hype and the broader market uncertainty, noted that there is a possibility that Bitcoin price could end up falling further. As forecasted, BTC could bottom out at $24,000 to $25,000, but if the bearishness intensifies, the cryptocurrency could slide to $20,000.<\/p>\n
However, FXStreet analyst Akash Girimath presented an upside target of $28,600 if Bitcoin price keeps above $27,000. But even potential corrections would not drag the digital asset below the $25,290 and $23,905 levels.<\/p>\n
BTC\/USD 1-day chart<\/p>\n
Read more about the aforementioned targets here - Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets in disarray as BTC flatlines<\/p>\n
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See original here: Bitcoin Ordinals, which enabled the possibility of creating NFTs on the worlds biggest cryptocurrency network, is starting to weigh on the network. The increasing cost of transactions is a rising concern, which could inadvertently trigger a further decline in Bitcoin price Continue reading
\nOrdinals and BRC-20 tokens might end up driving Bitcoin price to $20,000 - FXStreet<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"