Late on Wednesday, one Ordinal Punk NFT minted using the native Ordinals Protocol for Bitcoin was sold for 9.5 BTC, “ nearly $214,000.
The “Bitcoin Punks” project, which is inspired by the well-known CryptoPunks collection, is fast increasing in value as the hype surrounding Bitcoin non-fungible tokens (NFT) continues to develop.
According to a tweet posted late on Wednesday, one Ordinal Punks NFT, Punk 94, sold for 9.5 BTC, or around $214,000 at the time.
The 100 NFTs in the CryptoPunks collection by Yuga Labs, which is based on Ethereum, are part of the NFT collection that was minted on the native to Bitcoin Ordinals Protocol and sold out earlier this month.
Ordinals Protocol makes use of Bitcoin’s Taproot upgrade, which helps to protect the network and make transactions more efficient. It stores NFTs in inscriptions, which is a means of “inscribing” data in satoshis, or sats, which are one hundred millionth of a bitcoin. It stores NFTs in inscriptions, which is a means of “inscribing” data in satoshis, or sats, which are one hundred millionth of a bitcoin.
The NFTs that make up the Ordinal Punks collection were produced on the first 650 blocks of the Bitcoin network.
Within the community of the leading blockchain, the idea of Bitcoin NFTs has sparked a contentious discussion. While some specialists think the blockchain should only be used for financial transactions, others see the success of the Ordinal Protocol as a positive motivator for further blockchain development.
While the popularity of Ordinal Punks will increase demand for block space, miner revenue, and eventually Taproot adoption, Sam Callahan, Bitcoin analyst at financial services startup Swan Bitcoin, told CoinDisc that it doesn’t come without risks.
“In the long run, if demand for these inscriptions proves to be long-lasting, there is a risk that these inscriptions could impact other Bitcoin use cases, like payments via the Lightning Network, because they will distort the fee market away from its use as an open monetary protocol,” said Callahan.
