addresses

Bitcoin hits record 44M non-zero addresses, thanks to Ordinals: Glassnode

Glassnode noted that this is the first time in Bitcoin history that the network has been used for purposes other than monetary.

The launch of Bitcoin nonfungible tokens (NFTs) — known as Ordinals — has tipped the number of non-zero Bitcoin addresses to a new all-time high of 44 million, according to crypto analytics platform Glassnode.

In a Feb. 13 report from Glassnode, the firm explained that for the first time in Bitcoin’s 14-year history, a portion of network activity is being used for purposes other than peer-to-peer monetary Bitcoin (BTC) transfers:

“This is a new and unique moment in Bitcoin history, where an innovation is generating network activity without a classical transfer of coin volume for monetary purposes.”

Glassnode explained that the Ordinals surge has contributed to a “short-term uptick in Bitcoin network usage of late” which has brought many “new active users” with a non-zero BTC balance to the network:

*Bitcoin addresses with a non-zero balance is surging. Source:* *Glassnode*

“The primary source of this activity is due to Ordinals, which instead of carrying a large payload of coin volume, is instead carrying a larger payload of data and new active users,” said Glassnode.

“This describes a growth in the user base […] from usage beyond the typical investment and monetary transfer use cases,” it added.

A new player competing for block space

Glassnode noted that Ordinals is now competing for block space demand, which is “creating upward pressure on the fee market,” but noted that this hasn’t led to a significant increase in Bitcoin transaction fees.

According to Glassnode, since Ordinals launched on Jan. 21, the upper range of the mean Bitcoin block size has increased from 1.5-2.0 MB to 3.0-3.5 MB in a matter of weeks.

*Mean Bitcoin block sizes over the last three months. Source:* *Glassnode*

However, this hasn’t led to a surge in fees. While there have been some short-lived spikes, Glassnode stated that a “new lower bound transaction fee required for block inclusion” has been reached since Ordinals made their mark on Jan. 21.

*Median transaction fees on the Bitcoin network over the last five years. Source:* *Glassnode*

The technological applications behind the Ordinal protocol were enabled by the Taproot soft fork, which took effect in November 2021. Bitcoin Ordinals launched on Jan. 21.

Through the use of the Ordinals numbering scheme, Bitcoin users can assign arbitrary content to satoshis — the smallest denomination of BTC — which enables them to inscribe Bitcoin-native, nonfungible token (NFT)-like images.

There have been over 78,400 NFT-like images and videos inscribed thus far.

*The latest Ordinals inscripted onto the Bitcoin network. Source.* *Ordinals*

The impact of the NFT-like images on Bitcoin hasn’t come without controversy though.

Some notable “Bitcoiners” such as Blockstream CEO Adam Back have recently expressed their dislike for the Ordinals protocol, suggesting that it deviates from Bitcoin’s purpose as a peer-to-peer electronic cash system.

However, others have been more open to the idea. Bitcoin bull Dan Held has asserted on several occasions that Ordinals bring more “financial use cases to Bitcoin.”

BNB Chain on-chain activity bucks bear market downtrend in Q4: Messari

Average daily addresses on the Binance blockchain network grew by 30% year-on-year in Q4.

The Binance-native blockchain BNB Chain continued to show steady activity growth in the fourth quarter of last year despite the broader crypto bear market, according to recent research.

In a “State of BNB Chain Q4 2022” report published on Feb. 5, Messari researcher James Trautman revealed that the Binance network had continued with an “aggressive strategy to deploy financial and human capital across its ecosystem.”

Due to these ongoing updates and developments, average daily active addresses and transactions “bucked a downward trend and grew by 30% and 0.2%, respectively,” the researcher noted.

*BNB Chain daily active addresses. Source: Messari*

Bear markets are usually quiet periods in terms of on-chain activity, however, teams use this time to continue building and developing their products.

Trautman wrote that while “2022 was a tumultuous year for the crypto industry,” BNB Chain “lived up to its Build N’ Build name with network upgrades and ecosystem expansion that showed considerable strength through Q4.”

BscScan reports that daily transactions on BNB Chain have remained steady at around 3 million since mid-August. However, daily BEP-20 token transfers have seen an uptick in activity this year, with a 66% increase to just over 5 million on Feb. 5.

BNB Smart Chain unique addresses are currently at an all-time high of 250 million, according to BscScan. Average daily new unique addresses grew by 41.3% year-on-year.

Messari attributed the growth to the adoption of several ecosystem protocols such as Web3 onboarding protocol Hooked, a surge of DeFi activity on Venus Protocol and increased NFT activity on the OpenSea marketplace.

Meanwhile, BNB Chain DeFi total value locked has increased by 25% since the beginning of the year to reach $6.62 billion, according to DeFiLlama.

“BNB Chain executed a growth strategy that facilitated significant strides toward adoption. It made several upgrades to core functionality, integrated with strategic partners, and expanded into DeFi, NFTs, GameFi, and beyond,” said Trautman.

However, despite the uptick in user activity, financial performance was down. Average transaction fees decreased, which contributed to less revenue generation, it noted.

Network revenue declined 10% for the quarter but Messari stated that the fundamentals were still positive, concluding that:

“Ultimately, it was a positive sign that the catalysts for user growth came on the heels of a foundational user base and a more favorable valuation for BNB Chain’s network, especially after the FTX drama unfolded during Q4.”

Looking ahead, Trautman said that he expects BNB Chain to be able to continue its growth, including adding scaling solutions and boosting throughput.

The BNB Chain’s native token, BNB, has dropped 1.2% over the past 24 hours, falling to $326, according to Cointelegraph. The token has gained 25% over the past month but remains down 52.5% from its May 2021 all-time high of $686.