The introduction of the Ordinals protocol, first developed by Casey Rodarmor for the Bitcoin network, has seen a surge in activity on the Litecoin and Dogecoin networks. This unique system, designed to allow for the “inscription” of text and imagery on the Bitcoin network, has been transferred to these other chains, triggering increased transaction volume for nearly a month.
On May 18, Dogecoin set a new record for transaction volume with a staggering 1.2 million transactions processed in a single day, as reported by BitInfoCharts. Similarly, Litecoin experienced its highest-ever daily transaction volume on May 10, with a total of 584,000 transactions.
The Launch of LRC-20 and DRC-20
The Ordinals protocol was first adapted to Litecoin after pseudonymous Twitter user Indigo Nakamoto issued a challenge. Nakamoto offered a bounty of 5 LTC — around $500 — to anyone who could successfully “port” the Ordinals protocol to the Litecoin network.
A software engineer, Anthony Guerrera, stepped up to the plate and launched the Litecoin Ordinals protocol on February 19, eight days after Nakamoto’s challenge. In parallel, Dogecoin enthusiasts replicated the Ordinals protocol on their network, introducing the so-called “Doginals” protocol.
The primary catalyst for the exponential increase in network activity on Litecoin and Dogecoin was the subsequent introduction of the respective LRC-20 and DRC-20 token standards in early May. These new standards enabled users to generate and distribute new “memecoins” on both networks.
Ordinals Activity on the Bitcoin Network
The impressive surge of activity on the LTC and DOGE networks coincided with a notable increase in Ordinals inscriptions on the Bitcoin network. The Bitcoin network recorded a remarkable 400,000 daily inscriptions on May 10, the highest ever.
This rise in Bitcoin Ordinals inscriptions is tied directly to introducing the BRC-20 token standard. As per data from Ordinals scanner brc-20.io, over 24,000 new tokens have been minted on the Bitcoin blockchain following the launch of this new standard.