In the field of digital currency, Bitcoin is undoubtedly the most representative cryptocurrency, and its price fluctuations, transaction fees and other factors have always attracted much attention. Recently, the topic of Bitcoin inscriptions and the BRC-20 standard has attracted widespread attention in the market. At the same time, the latest data from Glassnode shows that Bitcoin (BTC) transaction fees have plummeted by 96%, triggering discussions among industry insiders about the future of BRC-20. Let's take a deep look at the reasons and impacts behind these phenomena.

As a hot topic in the field of cryptocurrency, Bitcoin inscriptions have always attracted the attention of investors and researchers. Inscriptions refer to transaction information on the Bitcoin network, which contains data such as the sender, receiver, and transaction amount. Through inscriptions, people can track the flow of Bitcoin and understand the supply and demand relationship in the market. Recently, the BRC-20 standard, as a new form of Bitcoin inscription, has attracted much attention in the market. The proposal of the BRC-20 standard aims to improve the efficiency and security of Bitcoin transactions and make the Bitcoin network more robust.

However, just as people have high hopes for the BRC-20 standard, the data released by Glassnode cast a shadow on the market. According to the latest report from Glassnode, Bitcoin's transaction fees have plummeted dramatically, falling by a full 96%. This data has aroused concerns among industry insiders about the Bitcoin trading ecosystem and has also aroused questions about the future development of BRC-20. What does the plunge in transaction fees mean? Can BRC-20 really develop sustainably? These issues are facing the entire digital currency industry and require us to think deeply.

Data released by Glassnode show that there may be multiple factors behind the 96% plunge in Bitcoin transaction fees. First, with the development of the Bitcoin network, the scale of transactions has gradually expanded, and the decline in transaction fees also reflects the expansion and optimization of the Bitcoin network to a certain extent. Secondly, with the increasingly fierce competition in the cryptocurrency market, exchanges have launched low-fee or even free transaction activities, which has also led to a decline in Bitcoin transaction fees. In addition, some technological innovations and algorithm optimizations have also provided support for reducing transaction fees. Taking all factors into consideration, the phenomenon of the plunge in Bitcoin transaction fees is not accidental, but an inevitable trend in the development of the digital currency market.

Although the plunge in Bitcoin transaction fees has brought some shocks, it has also brought new thinking to the digital currency market. As investors, we need to assess the situation, pay attention to market changes, and adjust our investment strategies in a timely manner. At the same time, as practitioners in the digital currency industry, we also need to continue to innovate, improve service quality, and adapt to market changes. Only through continuous learning and adaptation can we better grasp the pulse of the digital currency industry and achieve our own growth and development.

In summary, the development of Bitcoin inscriptions and BRC-20 standards, as well as the plunge in Bitcoin transaction fees, are important signals for the development of the digital currency field. We need to learn lessons from them, constantly improve ourselves, and adapt to market changes. Only through continuous efforts and innovation can we remain invincible in the digital currency industry and achieve our own long-term development. Let us look forward to the future of the digital currency industry and create a better future together!

Coin Circle (120Btc.com) News: Bitcoin Ordinals inscriptions and the popularity of BRC-20 triggered a crazy week on May 8. At that time, user demand blocked the Bitcoin network and the number of transactions broke through the historical high. The average fee paid to miners for each block exceeded the block reward of 6.25BTC at that time. Bitcoin inscription innovation also made the Bitcoin ecosystem a hot spot in the currency circle.

Bitcoin inscriptions and BRC-20 cooling down

However, blockchain analysis company GLASSNODE pointed out in its latest weekly report released on Monday (10th) that Bitcoin inscription activities are continuing to cool down. The report said that Bitcoin inscriptions have experienced 2 major waves of activity:

 Wave 1: Mainly image-based inscriptions, leading to the emergence of NFT assets on Bitcoin. So far, a total of 1.08 million images have been inscribed.

 Wave 2: Mainly text-based inscriptions related to "BRC-20 tokens". There are now 14.8 million text-based inscriptions on the Bitcoin chain.

In terms of the number of inscriptions, the second wave is an order of magnitude higher, but activity has been declining since May. This week, there was a brief rise in BRC-20 text inscriptions, but unconfirmed transactions in the Bitcoin memory pool have generally begun to clear.

The number of inscriptions is generally on a downward trend

Another interesting phenomenon is that as the inscription activity cools down, the number of active addresses on the chain begins to rise. The report believes that this phenomenon is the product of a large number of reused addresses of previous inscription traders. In fact, the Bitcoin network is now booming and the block space is full.

In addition, the number of Bitcoin transactions has recently reached a peak that was previously unattainable. The report analyzes that this is because inscription traders have taken advantage of the SegWit data discount, allowing miners to put more transaction data into each block, and some blocks are even close to the theoretical hard limit of 4MB.

The number of Bitcoin transactions

Bitcoin transaction fees dive by more than 96%

In addition, the number of daily transactions has also dropped significantly in recent weeks, consistent with the slowdown in inscription activity. After the network congestion caused by inscription, the unconfirmed transactions in the memory pool are slowly starting to clear, and on-chain transaction fees are also starting to decline, indicating that on-chain activity is currently slowing down overall.

"Since the peak of the BRC-20 craze in May, Bitcoin transaction fees denominated in US dollars have fallen by more than 96%, with the average fee currently paid being $1.33 and the fee number down to $0.16."

The average transaction fee for Bitcoin has shrunk significantly

While inscription activity is cooling down, the number of Bitcoins transferred has begun to increase significantly. BTC turnover has risen 75% from the FTX low, and the current daily settlement total has reached $4.2 billion.

If we only look at exchange inflows and outflows, we see that the Bitcoin network is entering a period of positive dynamics. Currently, the average monthly exchange flow (Bitcoin funds flow in and out of exchange wallets, EXCHANGE
FLOW) is significantly higher than the annual average data. From the perspective of monetary assets, this sign shows that Bitcoin adoption is increasing against historical records.

"While several other on-chain activity indicators are cooling, this indicator shows that Bitcoin currency transfers are back in the driver's seat."

Bitcoin's exchange net flow

OKX is becoming the main trading platform for the secondary market of Bitcoin Ordinals

Bitcoin on-chain data shows that Bitcoin inscription activity is cooling down, and changes are also occurring on the board of its major secondary market trading platforms.

According to the Dune data dashboard created by @domo, since July, OKX has gradually replaced UniSat and Magic Eden as the leading platform for Bitcoin
Ordinals secondary market transaction volume. The market share of OKX inscription transaction volume has grown rapidly from 30%-40% at the end of June to more than 80% this week.

However, in terms of transaction volume and active users, the data of the OKX platform is still far lower than UniSat and Magic Eden, which means that the average single transaction amount of OKX inscriptions is significantly higher than other major platforms.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.