The most popular blockchain for hosting Web3 content for digital artists and NFT makers has been Ethereum for a very long time. The Bitcoin blockchain is currently gaining ground in its competition with Ethereum to leave a lasting impression on the NFT market. The sales of NFTs based on Bitcoin have significantly increased during the past month. With this, Ethereum moved up to the top spot on the list of the top blockchains to have surfaced recently, moving the Bitcoin blockchain to second place.
According to a study by Bitcoin.com using CryptoSlam.IO data, Bitcoin-backed NFTs generated approximately $173.28 million (roughly Rs. 1,433 crore) in income over the course of the previous 30 days.
Bitcoin, a blockchain with a high proof-of-work (PoW) energy requirement, supports the Ordinals category of NFTs in particular. An NFT is categorized as an Ordinal NFT when it is recorded on one Satoshi unit of the Bitcoin blockchain. The smallest Bitcoin denomination is called Satoshi, after the anonymous founder of the cryptocurrency.
After BAYC parent company Yuga Labs announced its own Ordinals NFT collection dubbed TwelveFold in March of this year, the Ordinals classification of NFTs gained enormous popularity.
As of May 24, fees paid by BTC miners for validating Ordinal inscriptions on the Bitcoin blockchain were BTC 1,495. The money earned by the Ordinals validators totals $40.2 million at a certain point, when BTC is trading at $26,077 (approximately Rs. 21.5 lakh).
The Bitcoin blockchain was used to support nine out of the top ten NFTs sold in recent weeks.
According to reports, ordinary NFT collections like Space Pepes, Bitcoin Frogs, and $NALS NFTs were able to bring in $12.2 million (approximately Rs. 101 crore), $9.8 million (about Rs. 81 crore), and $6.8 million (roughly Rs. 563 million), respectively.
Bitcoin has eclipsed traditionally preferred blockchains like Polygon and Solana in terms of gaining the market share for digital collectibles thanks to these incredible income collections made possible by Ordinals NFTs.
Bitcoin is an energy-intensive blockchain that needs lots of electricity and powerful computers for miners to validate transactions and add newer blocks to the blockchain, as compared to Ethereum, Polygon, and Solana, all of which are environmentally friendly and green blockchains.
NFT exchanges like Binance NFT and Magic Eden have just implemented support for the buying and selling of Ordinals NFTs. According to reports, the OKX cryptocurrency exchange also intends to introduce its NFT marketplace, which will accommodate Ordinals NFTs.
Ethereum is still the NFT kingdom’s governing regent in the meantime.
In the past 30 days, Ethereum-based NFT sales brought in a staggering $392 million (or nearly Rs. 3,245 crore).
Contrarily, Solana and Polygon NFTs were able to generate $53.7 million (approximately 444 crore rupees) and $27 million (about 223 crore rupees) in sales over the previous month.
