Bitcoin Inscriptions Skyrocket and Miner Activities Surge Ahead of Halving

By: Eliza Bennet

Bitcoin Inscriptions and Mining Activity Surge

The incorporation of the Ordinal Theory protocol changed the Bitcoin transaction dynamics over the past year. Since its introduction in January 2023, the total number of inscriptions has exceeded 60 million, dominantly sourced from text data, with considerable daily fluctuations. This rise led to a spike in transaction fees for miners due to increased inscription activities, generating an impressive 3,588 Bitcoin.

As the Bitcoin halving approaches, miner reserves exhibit sustained net outflows, dropping to their lowest levels since June 2021. This trend possibly contributes to Bitcoin miner CleanSpark's preparedness for the subsequent decrease in fees. The company plans to enhance its Bitcoin mining capacity to 2.4 exahashes per second through new acquisitions.

An unexpected surge in Bitcoin fees derived from the 'other' category of inscriptions, which includes software code, digital signatures, legal documents, or arbitrary data that users wish permanently record on the blockchain, occurred on Feb. 4. This unprecedented hike in the 'other' inscriptions presents interesting monitoring opportunities, as it could have potential implications on the Bitcoin ecosystem.