If Bitcoin price breaks above $30,000, several altcoins such as SOL, ATOM, ICP and HBAR are well-positioned for a rally of their own.
Risky assets marginally extend their up-move in April. The S&P 500 Index rose around 1.5% in April while Bitcoin BTC $28,584 is on track to end the month with gains of more than 4%. Could the rally continue in May or is it time for a pullback?
The recovery could face headwinds if the United States banking woes escalate further. JPMorgan Asset Management chief investment officer Bob Michele said in an interview with Bloomberg that the turmoil at First Republic Bank is unlikely to be limited to the bank only, and could cause a domino effect.
Ordinals have been a controversial topic within the Bitcoin community but crypto investment firm Grayscale says there’s two main reasons to be optimistic.
Bitcoin BTC $28,594 Ordinals — also known by some as Bitcoin NFTs — could renew developer enthusiasm for Bitcoin and boost mining fees, according to cryptocurrency investment firm Grayscale.
In an April 27 “Market Byte” blog post, the firm suggested that Ordinals provide two key benefits to the growth and development of the Bitcoin ecosystem.
The first is a substantial increase in fees paid to miners, which has been seen since the launch of the protocol in January, according to Grayscale.
“The advent of ordinals has led to an increase in total fees paid to miners […] which could potentially establish a sustainable baseline level of transaction fees to incentivize miners.”
Grayscale argued that this would ensure “continued network security throughout the lifetime of the Bitcoin network.”
As reported by Cointelegraph, in less than two months after its launch, more than $600,000 was paid to Bitcoin miners, solely as the result of fees generated by Ordinal inscriptions. As of the time of publication, that figure now exceeds the $6.5 million mark.
The investment firm also believes that Ordinals and the “velocity of NFT adoption” could also attract new Bitcoin users and spark more development on the Bitcoin network.
“We believe the emergence of ordinals is likely to promote a development-oriented community and culture in support of the Bitcoin network.”
On April 30, Ordinals reached a new record, with the number of daily inscriptions topping 300,000.
Around the same time, the number of Bitcoin transactions neared peaks not seen in a number of years, according to blockchain data firm IntoTheBlock.
The meteoric rise of Ordinals has been a controversial topic in the wider Bitcoin community, with Bitcoin maximalists extensively criticizing them for straying from the original purpose of Bitcoin as a peer-to-peer electronic currency and clogging up valuable block space.
One such critic is Blockstream CEO Adam Back, who has declared Ordinals to be “useless” and saythat he is “more into Bitcoin as a currency.”