In September 2023, there was a temporary lull in Bitcoin network activity, but by October, there was a significant increase in the use of ordinal inscriptions, accounting for 40-50% of all transactions. This change marks an important shift in the dynamics of cryptocurrency usage, highlighting a growing interest in new forms of transactions in the digital space.
Along with financial operations and the rising value of Bitcoin, the increased use of ordinal inscriptions led to a rise in the number of unconfirmed transactions. By midday Saturday, the volume of unconfirmed transactions in the mempool grew from 300,000 to 400,000, indicating a strain on the system and a need for optimization.
In response to the increase in transaction fees, which exceeded $40, a part of the crypto community suggested moving from the strategy of holding cryptocurrencies to using a scalable second-level solution like the Lightning Network. This proposal reflects a desire for more efficient and economical use of blockchain technologies.
By the end of November, there was a slight increase in the capacity of the Lightning Network from 5440 BTC to 5540 BTC. However, after November 25th, there was an outflow of approximately 350 BTC (about $14.8 million) from the network, indicating changes in user preferences and possible adjustments in investment strategies.
Interestingly, while the capacity of the Lightning Network decreased, the capacity of a similar second-level solution from Blockstream Liquid increased by 199 BTC since November. Nevertheless, the Liquid explorer shows minimal transaction activity, which may be related to expectations of a rise in Bitcoin's price due to the potential approval of a spot Bitcoin ETF in the USA. This assumption highlights the impact of regulatory decisions on the cryptocurrency market and traders' strategies.
