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Bitcoin miners earn $5M from Ordinals as Reddit NFT launch faces botting issue

In this post:

  • The use of nonfungible tokens (NFTs) continues to grow rapidly, with miners pocketing over $5 million from creating NFT-like inscriptions using the Ordinals protocol.
  •  The recent launch of Reddit’s third batch of NFTs faced botting issues that caused many users to miss out on the sale.

The use of nonfungible tokens is rapidly increasing as miners pocket over $5 million from creating NFT-like inscriptions using the Ordinals protocol. The transaction fees for Ordinals transactions have increased by 240% from $1.5 million on March 10 to $5.2 million on April 12, according to data from Dune Analytics. 

This increase followed a slow period between Feb. 16 and March 10, during which fees ranged from $1 million to $1.5 million. Prior to that, fees had hit the $1 million mark within the first four weeks of the Ordinals protocol launching on Jan 21.

The Ordinals protocol allows for the inscription of nearly 1.1 million Ordinals on the Bitcoin network. These inscriptions consist mostly of JPEG images and text, but also include PDFs, video, and audio formats. Roughly 100 to 500 inscriptions are processed in each Bitcoin block, which usually contains between 2,000 to 3,000 transactions. Block 783,758 on April 3 saw a record 3,785 inscriptions, representing nearly 87% of the entire block.

Reddit launched its third batch (Gen 3) of NFTs on April 12, which included a “Futures Realities Collection” of Collectible Avatars created by over 100 artists. The artists behind each limited edition Avatar will receive royalties upon each sale, and no cryptocurrency was needed to purchase them. However, the release was plagued by spam bots that caused many Reddit users to miss out on the sale. The Reddit NFT shop also crashed shortly after the launch due to overwhelming traffic.

Adidas  releases the first leg of its latest dynamic NFT collection, “ALTs by Adidas.”

Adidas has released the first leg of its latest dynamic NFT collection, “ALTs by Adidas.” The dynamic will evolve based on the decisions and engagement of the owner. This collection is the first step towards owning an “ALTS by Adidas” identity. The floor price of each Adidas NFT is 0.666 Ether ($1,275) and has so far raked in 351 ETH ($672,000) in trading volume. There are now 8,989 owners, 56% of them unique.

The rise of NFTs has revolutionized the way digital assets are owned, with many companies exploring their use in various industries. As the use continues to grow, it is important for companies to address issues such as spam bots and site crashes to ensure fair distribution and accessibility for all interested buyers.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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