BTC NFT ecological overview: development status, trading market and value analysis

At present, the blue chip project of BTC NFT has not yet determined the pattern.

Written by: 0xElaine

1. Introduction to the Bitcoin NFT protocol Ordinals

As an encrypted token that can represent a unique digital asset or physical asset, NFT is unique and irreplaceable on the blockchain. NFT has been developed on smart contract platforms such as Ethereum for many years, and many famous projects and applications have been born. However, on Bitcoin, the earliest and most secure blockchain, due to its lack of native smart contract functions and high transaction fees, NFT has not been widely developed and applied.

In order to solve this problem, a protocol called Ordinals was officially launched on December 14, 2022. It utilizes the technical characteristics of Segregated Witness (SegWit) and Taproot 3 on the Bitcoin network (reducing the size of transaction data, thereby speeding up transactions, improving Scalability and lower fees.), enabling direct minting, transfer and destruction of NFT on the Bitcoin chain. The Ordinals protocol numbers the smallest unit (Satoshi) in each bitcoin and links it with a metadata to form a unique and traceable NFT. The Ordinals protocol does not require any centralized or trusted parties to participate, nor does it need to rely on any Layer 2 or side chain solutions. It fully follows the rules and security of the Bitcoin network itself.

The next big move for Bitcoin NFTs will come in December 2022, when the first serial number inscription is minted.

Bitcoin NFT protocol Ordinals minted 5 million+ inscriptions on May 10, and the total cost so far has reached about 213.1 BTC.

How do serial numbers and inscriptions work?

ORD, which is an open-source software that can run on top of any Bitcoin full node, can track individual Satoshis according to what founder Casey Rodarmor calls "the theory of ordinal numbers." Satoshis ("sats") are the smallest unit of the Bitcoin network, 1 bitcoin = 100,000,000 sats. Ordinal number theory assigns a unique identifier to every person on Bitcoin. In addition, these individual sats can be "inscribed" with arbitrary content, such as text, images, videos, to create "inscriptions", that is, Bitcoin's native digital artifacts can also be called NFTs.

**Personal sats can be "inscribed" with arbitrary content, such as text, images, videos, to create an "inscription", a Bitcoin-native digital artefact, or NFT. **

Data on the number of inscriptions on some current ordinals agreements

2. The development status of BTCNFT

1. From blue-chip projects on ETH and Solana to NFT projects issued on the Bitcoin network

NFT items of big card slots

Refers to blue-chip projects on ETH and Solana to NFT projects issued on the Bitcoin network, such as Yuga Labs' "TwelveFold" and the Bitcoin version of DeGods. TwelveFold is an NFT released by Yuga. There are only 300 of them. It is also the only NFT project endorsed by a large institution. It takes the artwork route. The ceiling of artwork is much higher than the PFP avatar. If it succeeds in the future, it will be a top luxury product!

**This type of project already has a lot of influence, so the launch price is also high. **Yuga Labs' "TwelveFold" sold 288 NFTs in the form of auction, with the highest winning bid price being 7.1159 BTC and the lowest winning bid price being 2.2501 BTC. The total auction revenue was about 16.5 million US dollars. Currently, on ordinals.market, the floor price of "TwelveFold" exceeds 30 ETH, and the cumulative turnover is 108.49 ETH. DeGods sold 500 Bitcoin versions of DeGods within 2 minutes at a price of 0.333 BTC.

2、「Sub 10K」

Each inscription (Bitcoin NFT) has an inscription serial number. The earlier Mint is, the smaller the serial number, **so NFTs with serial numbers below 10,000 and 100,000 are given an "antique" meaning. **Although these early inscriptions often have no theme in content, what they are speculating is a "time" value.

Currently, the 2nd and 8th Bitcoin NFTs released by Mint—Inion #2 and Inion #8 are both listed on the Ordinals Wallet market.

The current highest-traded “Sub 10K” Bitcoin NFT is Ordinals Punk #87 (Inion #613), with a transaction price of 2.77 BTC. On March 17, Bitcoin Logo image Inion #3384 was sold at a price of 0.31 BTC. The most influential "Sub 10K" series include Ordinals Punks, Bitcoin Shrooms and Planetary Ordinal, and the familiar Bitcoin Punks is "Sub 100K".

3. BTC native encryption color

**Bitcoin Punks is also a perfect replica of CryptoPunks on the ETH chain. **The inscription number is also ranked in the top 40K. It is very early and basically held by old OG players. There is also an OKX endorsement behind it. Like Monkey, it belongs to the NFT with the largest consensus.

Taproot Wizard officially shared the mental journey of founder Udi Wertheimer on social media: "On the day of Silicon Valley Bank's collapse and USDC panic day, I decided to launch the Taproot Wizard NFT project today and let people record videos of themselves bathing in wizard costumes" . It is reported that Taproot Wizard is an NFT project created on the Bitcoin chain, initiated by encrypted asset developer Udi Wertheimer, to commemorate the Taproot upgrade of Bitcoin and a classic image of the Bitcoin community-Bitcoin Wizard.

4. Shovel empowerment type

**Refers to the NFT series that continue to receive valuable airdrops after holding. The currently well-known "shovel" is BTC Machine, and they have airdropped two projects, BTC Operators and BTC Virus. **

Currently, the floor price of BTC Machine in the Ordinals Wallet market is 0.088 BTC, while the floor prices of BTC Operators and BTC Virus are 0.018 BTC and 0.0012 BTC respectively. What deserves our attention is that using various Bitcoin NFT-related tools is extremely It is possible to be airdropped "shovel".

Ordinals Wallet airdropped 1,563 sad frog-themed pixel PFPs — “Pixel Pepes” to its early users at the end of February. The current floor price of the series is 0.066 BTC. As the current top three Bitcoin NFT trading market in terms of trading volume, the value of Pixel Pepes is largely derived from the "shovel" expectation. Since the current Bitcoin NFT-related tools overlap in the functions provided, it is very possible to attract traffic by airdropping NFT to users. Therefore, from now on, everyone should pay attention to more interactive Bitcoin NFT related tools.

BTC NFT's list of currently noteworthy NFT series:

• TwelveFold: There are only 300 NFTs released by Yuga, and it is also the only NFT project endorsed by a large institution. It takes the artwork route, and the ceiling of the artwork is much higher than the PFP avatar. If it succeeds in the future, it will be a top luxury product !
• DeGods: A blue-chip project on Solana to an NFT project issued on the Bitcoin network.
• Sub 10K: Sub10 refers to the top 10,000 inscriptions in the inscription number, which is currently the favorite of old OG players.
• Bitcoin Punks: Bit Punks is also a perfect replica of CryptoPunks on the ETH chain. The inscription number is also ranked in the top 40K. It is very early and basically held by old OG players. There is also an OKX endorsement behind it. It is currently the same as Bit Monkey , which belongs to the NFT with the largest consensus.
• Taproot Wizard: Taproot Wizard is an NFT project created on the Bitcoin chain, initiated by encrypted asset developer Udi Wertheimer, to commemorate the Taproot upgrade of Bitcoin and a classic image of the Bitcoin community-Bitcoin Wizard.
• Pixel Pepes: Ordinals Wallet airdropped 1563 sad frog-themed pixel PFPs to its early users at the end of February - "Pixel Pepes" (Ordinals Wallet Airdrop)
• BTC Machine: shovel type, they have airdropped BTC Operators and BTC Virus two projects.
• Bitcoin Pizzas: There will be some enthusiasm for the 5.22 Pizza Festival, the quantity is relatively small, and it may be valuable if the enthusiasm rises.
• DogePunk: Bitpunk dog, strong buying, 10k series.
• bitcoin frogs: Bitcoin frogs, 10K series, pepe has become popular recently, and various baby series will be popular again, and it has the attribute of golden cicada baby to attract money.
• JOMO HIPPO: JOMO Hippo, also an original series by BTCNFT.
• Bitcoin Moonbirds: Moonbird series of the btc chain, 10K series, Moonbird is CC0, the first blue-chip big IP from ETH without copyright disputes, so there will be no copyright issues.

3. BTCNFT trading market

1. Exchange NFT MARKET PLACE

OKX founder Xu Mingxing said **OKX Web3 wallet will soon support market transactions of Ordinals and BRC-20 tokens. **

2. The native Ethereum trading market supports the ordinals protocol

Magic Eden launches Launchpad for Bitcoin Ordinals NFT creators.

3、Bitcoin native trading market

Gamma.io：

Gamma, the NFT market on Stacks, was originally named STXNFT, and it was announced on April 27, 2022 that it will be renamed Gamma. The platform aims to bring collectors, creators and investors together to explore, trade and showcase NFTs in the Bitcoin ecosystem. Gamma platform consists of three core products: NFT market, Launchpad and social platform. Gamma.io supports both primary and secondary markets for Bitcoin NFTs.

Gamma.io offers a casting method called Gamma bot. Users can use Gamma bot to mint their own unique digital creations, collect them or sell them. Users can mint NFTs through simple commands without coding or technical knowledge: just add Gamma bot on Discord and enter commands such as create to create an NFT. Gamma.io also launched a .btc domain name marketplace, allowing users to have their own decentralized identities and websites. Register, buy, sell and transfer .btc domain names on Gamma.io, and also bind them to your own NFT.

4, comprehensive platforms such as inscription engraving and brc20 trading market

Unisats ：

At present, the brc20 token issuance and token platform, the inscription engraving platform, and the registered domain name can also be used on this platform. It supports point-to-point transactions of brc20 tokens. It has the largest number of daily active users and trading users every day, but currently does not support transactions in the btc NFT trading market. Of course, due to the large number of users, it also faces frequent freezes and crashes, and we look forward to more and more iterations of the product. At present, the Chinese team here has the fastest product speed.

IDclub:

It is a platform for domain names and token engraving, but does not support brc20 token point-to-point transactions, and does not support the btc NFT trading market.

List of tools for ordinals ecological mapping and brc20 tokens:

(source @elaineyang73)

Current trading market trading volume leaderboard

4. The value of BTCNFT

**A brc20 token contains at least 546 Satoshi, and it is impossible to return to zero. From this point of view, it is at least more valuable than air tokens on ERC20. Therefore, everyone should hold an inclusive attitude towards brc20 tokens, and don’t take it all Negative, don't accept it all, just watch as you go. **

**Gives everyone the right to explore the value diversity of Bitcoin freely and fairly. Of course you can create an "NFT series", and you can even use the Bitcoin network as your "diary" to record the words you write, the pictures you draw, the songs you sing... from ancient times to the present , People record their information on the walls of caves, on bamboo slips, on paper, on computers, and until now on the Bitcoin network. As long as you think that the Bitcoin network is eternal, then the information recorded on the Bitcoin network is also eternal, and the carrier of the information is Bitcoin itself. There is nothing cooler than this. **

If you use one word to describe the difference between Bitcoin NFT and Ethereum NFT, what would you choose?

• ** Some people say that Bitcoin NFT is "eternal". **As long as you believe that the Bitcoin network is eternal, all the data "burned" on Bitcoin will exist forever. Do not play off-chain, only play on-chain.
• Someone said, said - this is a banknote with a serial number on it, if you put something on it, will it be different? Hong Kong dollar does not know, but Bitcoin will! 1 Satoshi = Whatever you inscribed, this is the biggest underlying value logic difference between Bitcoin NFT and Ethereum NFT.
• ** Some people say that Bitcoin NFT is "historical value". **Because the "burning" of Bitcoin NFT will lead to the difference in the size of the serial number of Bitcoin NFT, the earlier the "burning" of Bitcoin may be more valuable in the future, just like dinosaur fossils in the Jurassic period. From ancient bronzes to modern steel bars.
• ** Some people say that Bitcoin NFT is "free". ** From Slik Road, to some online shopping malls, to Amazon and eBay, Bitcoin has been developing along the path of "more widely accepted currency". The emergence of the Ordinals protocol has made Bitcoin more free. Who knows what extra value a "burned" Satoshi would have? The free flow of the market will give these "burned" bitcoins a new value. One day, we will get the answer to this question. These answers are all showing us the unique charm of Bitcoin NFT compared to Ethereum NFT. (Original source)

5. Challenges that Bitcoin NFT may face

Not scaleable

Due to the cost factor of Bitcoin NFT (fully chained), it may not be possible to achieve large-scale application and popularization at present.

Lack of infrastructure

At present, the Bitcoin NFT ecosystem is not perfect, lacks relevant infrastructure and application scenarios, and mostly relies on over-the-counter transactions.

Operation threshold is high

Continuing from the above, since most Bitcoin NFT transactions need to be carried out off-site, its operation is more complicated. For ordinary users, it may be more difficult to understand and use.

Push up Bitcoin network transaction fees

Rising transaction fees on the Bitcoin network, a side effect of adding NFTs to the Bitcoin blockchain, has caused the worst block congestion in Bitcoin transactions since FTX's bankruptcy.

Breaches fundamental teachings of Bitcoin

Bitcoin supremacists (Maximalists) believe that Bitcoin NFT violates Satoshi Nakamoto's original intention of creating "peer-to-peer electronic currency", and writing NFT-related data into Bitcoin is undoubtedly a waste of block capacity.

6. Market Outlook

1. At present, the blue chip project of BTC NFT has not yet determined the pattern, but Bitfrog seems to have the potential of this 10k series blue chip. For the 10k series, the fp of 1btc is a big threshold, but it can be rushed, and it will come in with the exchange Platform BTC NFT

2. The future btc NFT must be the original btc ecological series, not the copy paste series of the Ethereum chain. At the same time, it is still continuing the PFP gameplay of NFT. Only the btc NFT that can make the avatar series of PFP can become a blue chip potential

3. If the floor price of BTC NFT is 0.001, the pulling effect is the best, because such odds basically have the potential to increase by 20 times. The current floor price of 0.01B is a threshold, 0.02B is a threshold, and 0.1B is a threshold. Can advance to blue chip series.

4. There is currently no new narrative gameplay in the eth chain. It has been observed on the chain that many NFT project parties have begun to migrate to BTCNFT to start their own businesses in the past half a month. NFT artists should dig out more colors of btc elements to create.

5. At present, the market is still in a phased bear market. There is not much market for secondary altcoins. Hot money can only speculate on BTC NFT for profit. After a wave of trading, it will leave. If there is no more empowerment for the BTC NFT project, most will also tend to zero

Reference:

Binance Research: Bitcoin ushers in a 'new era'

An analysis of Bitcoin memeNFT, what the bald wizard Taproot Wizard is paying tribute to and expressing

Bitcoin NFT Protocol Ordinals Ecological Summary

Binance Research: Bitcoin ushers in a 'new era'

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