• Retail holders of Bitcoin, i.e., addresses holding less than 10 BTC, have increased their relative share of the circulating supply.
• The Ordinals protocol made mass-minting of both fungible tokens like BRC-20 and non-fungible tokens (NFTs) possible, leading to an unprecedented spike in daily transactions.
• This frenzy was driven by low-value transactions executed typically by retail holders of the coin.
How Bitcoin Shrimps and Crabs are Shaping BTC Adoption
Retail holders of Bitcoin, i.e., addresses holding less than 10 BTC, have increased their relative share of the circulating supply following the collapse of Terra [LUNA] token and FTX bankruptcy episode.
The Ordinals Protocol
The Ordinals protocol has made it possible for mass-minting of both fungible tokens like BRC-20 and non-fungible tokens (NFTs). This has led to an unprecedented spike in daily transactions on the Bitcoin network.
Low Value Transactions
The transfer volume or total number of coins transferred is disproportionately low compared to the transaction count which indicates that this frenzy is being driven by low value transactions typically executed by retail holders.
Increased Demand for Self Custody
This high demand from retail investors also suggests an increased demand for self custody as these investors are more likely to keep their assets with themselves rather than transferring them out.