Memecoins have been a constant presence in the crypto world since the inception of Bitcoin. However, their primary function often appears to be enabling investors to capitalize on prevailing trends. Consequently, the continuous, daily, creation of thousands of memecoins stems from the anticipation of leveraging market hype for substantial profits.
The latest entrant to the memecoin arena, the ORDI token, has recently achieved significant numbers, prompting speculation about its potential to replicate the successes of ‘dog coins’ like Dogecoin and Shiba Inu.
Notably, ORDI made history on December 5 by becoming the first BRC-20 token to reach a $1 billion market cap, which has now increased to $1.2 billion. The token has experienced two distinct all-time-high prices within the last two months.
On November 16, ORDI initially surged to a new all-time high of $27, accompanied by a market capitalization that exceeded $428 million. According to CoinGecko data, ORDI achieved another all-time high on December 5, surpassing $69, marking an 850% surge from around $6.80 on November 5.
In the first week of December alone, ORDI witnessed a 216% increase and is currently showing a 14.42% uptick this week. This surge followed a period of healthy correction and price range, and its current price stands at $56.83.
The Origin Of ORDI and its Interesting Run in 2023
Despite being categorized as a memecoin with no intrinsic value, ORDI has gained traction and market capitalization owing to its inventive use of the Bitcoin blockchain.
ORDI is based on the Ordinals protocol, and it is the first BRC-20 token on the Bitcoin blockchain. It boasts a total supply of 21 million coins, mirroring Bitcoin’s structure.
As mentioned, the latter part of 2023 saw a substantial surge in ORDI’s price and trading volume, particularly following its listing on major cryptocurrency exchanges such as Binance, OKX, Bybit, and DigiFinex.
Another significant development was Binance Pool’s introduction of an Ordinals inscription service, enabling users to inscribe data to Satoshis through Binance’s mining pool. Binance further incentivizes users by launching a reward campaign for those depositing at least 72 ORDI to their accounts, sparking a notable buying spree. Additionally, Ordinals found integration with Reactor, a decentralized platform facilitating the creation and management of NFTs on the Bitcoin blockchain.
A Threat to ORDI ‘s Future: Vulnerability Issues Surrounding The Ordinals Protocol
The Bitcoin Ordinal protocol, created by Casey Rodarmor in 2022, allows for the creation of non-fungible tokens (NFTs) directly on the Bitcoin blockchain. The protocol is simply a set of processes that enables the inscription of additional data on individual satoshis (SATs) on the Bitcoin blockchain. (SATs are the smallest units of Bitcoin; 100,000,000 satoshis equals one Bitcoin.)
The emergence of Ordinals has closely correlated with the rise of the ORDI token. Bitcoin Ordinals development led to the introduction of the BRC-20 token standard, which enabled the rise of ORDI, the memecoin representing Ordinals tokens.
However, the rise of Bitcoin Ordinals has sparked debates in the crypto community. Critics argue that using block space for inscribed satoshi Ordinals is inefficient, potentially causing increased Bitcoin transaction fees and slower transaction times for all users. However, proponents believe in the potential of the protocol to expand Bitcoin’s utility beyond financial transactions.
Apart from creating Ordinal NFTs, the protocol could be used for attaching ordinal satoshis to security tokens or stablecoins, enabling Bitcoin smart contracts, and broadening cryptocurrency adoption. These debates have divided the Bitcoin community, with some calling for the resolution of the “Ordinals bug” due to blockchain spam concerns, while others argue that as long as inscriptions are profitable for miners, they will persist.
The discussions took a different turn when the National Vulnerability Database, a division of the US Department of Commerce, officially included Ordinals in its database with the CVE-2023-50428 designation. This highlights a potential vulnerability introduced into the Bitcoin infrastructure. Essentially, Ordinals introduce a problem, hiding extra information in the system, making the network slower, less secure, and less efficient.
This move by the National Vulnerability Database reflects the increasing attention of government authorities to the security aspects of cryptocurrencies. It underscores their growing awareness and proactive measures to navigate the evolving landscape of digital assets and associated risks while maintaining robust security.
Analysis of ORDI’s Current Price Action
Despite various challenges surfacing, the fundamental outlook for ORDI appears under threat. However, its price performance has remained robust and decidedly bullish as we approach the close of 2023. The price is confidently above the 50-day moving average (depicted by the green line), even though it has been consolidating within the $47 to $57 price range, as illustrated in the Fibonacci retracement drawing. This consolidation is a typical response following its recent surge in value over the past few weeks.
It’s crucial to highlight that ORDI’s price is anticipated to closely follow Bitcoin’s movements, similar to how Ordinal Inscriptions have behaved historically. The positive correlation with Bitcoin’s NFT space activities further reinforces this connection, as the NFT space is intricately linked with Bitcoin’s price. Therefore, an increase in Bitcoin’s value is likely to drive more users to inscribe NFTs, triggering a potential surge in ORDI toward its all-time high of $69.
Another noteworthy aspect is that, unlike many other memecoins boasting billions or even trillions of tokens, ORDI mimics Bitcoin’s finite supply with just $21 million tokens. This scarcity might be perceived as a key metric enhancing the token’s value, potentially motivating traders and investors to contribute to increased buying pressure and propel ORDI’s price toward $100 or $200.
Final Thoughts
A positive outlook on Bitcoin could result in substantial gains for ORDI. The token has experienced early success and holds a unique position as the official token of the Bitcoin Ordinals protocol. Its current bullish trend, influenced by its correlation with the expanding Bitcoin NFT space, remains evident despite concerns and notable attention from both the government and the crypto community.
However, it’s crucial to acknowledge the potential impact of government scrutiny and community apprehensions, especially amid discussions to potentially halt the continuation of Ordinals on the Bitcoin network. The fate of ORDI hinges on these considerations.
Disclaimer: This piece is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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