Analysis of three reasons why ORDI broke through $80

Over the past week, the Bitcoin-based BRC-20 meme coin “ORDI” has experienced an unexpected wave of gains. On March 5, the price of ORDI once exceeded $87, setting a record high. Although there was a slight pullback later, the overall price remains within the range of around $80.

In the context of the current crypto bull market environment, why can ORDI stand out in the field of BRC-20 meme coins? Koala Finance found some reasons.

Three reasons why ORDI is riding the bull market higher

ORDI is the first BRC-20 token to be released on the Bitcoin blockchain, with a total supply of 21,000,000. ORDI was created simply as an experiment to test whether Ordinal theory could be leveraged to deploy fungible tokens similar to the ERC20 standard issued on Ethereum.

Frankly speaking, many users in the crypto community mistook ORDI, the Bitcoin-based meme currency, as the native token of the Ordinals protocol. Although this misunderstanding was quickly corrected, it remained for a long time. The price of ORDI has not improved much during this period. You will find that ORDI has shown a growth attitude since early November, which is very consistent with the time when Bitcoin enters the next bull market cycle and the price rebounds and recovers. ORDI’s price surge has been surprising in recent days as Bitcoin prices broke above $69,000.

1. The BRC-20 inscription plate is hot. ORDI is the representative token of the BRC-20 inscription sector, which has recently received great attention from the market. After listing the ORDI token on November 7, Binance, the world’s largest cryptocurrency trading platform, started a craze for BRC-20 tokens. This move has caused many BRC-20 tokens such as SAT, RATS, and TURT to experience increases of several times or even hundreds of times, becoming the most watched market track in recent times.

2. ORDI’s own value. ORDI is the native token of the Ordinals protocol, which allows users to engrave various digital assets on the Bitcoin blockchain, including images, videos, audio, text, etc. This brings new possibilities to the Bitcoin ecosystem and gives ORDI unique value.

With the overall improvement of the cryptocurrency market, investors have shown great enthusiasm for emerging tokens such as ORDI, and market sentiment has also been driven. This sentiment has fueled increases in ORDI prices.

The exchange silently supports ORDI behind the scenes?

It was previously disclosed that the top 30 ORDI holders hold a total of 16.78 million ORDI (approximately US$950 million), accounting for 79.94% of the total supply, according to analysis of the top ten ORDI addresses It shows that five of the addresses belong to exchanges such as Binance, OKX, Gate, etc., which means that the current focus of the ORDI market may have changed, starting from "minting" and gradually shifting to cryptocurrency exchanges, because ORDI tokens The “chips” are now basically concentrated in exchanges.

Relatively speaking, the exchange giants have actually made preparations for the ORID market in advance. For example, OKX announced the opening of ORDI recharge as early as May this year. Binance announced the launch of ORDI on November 7, 2023, about a month before ORDI skyrocketed.

It is undeniable that the sharp increase in the price of ORDI has attracted huge attention from the encryption community, and at the same time, many people have begun to understand the Bitcoin ecosystem. Not only that, ORDI also promotes the development of the inscription track, and may even promote the development of the second-layer network of the Bitcoin blockchain. Users create off-chain transaction channels at the Layer 2 execution layer, and process transactions through off-chain computing methods, improving Scalability and throughput while reducing transaction costs.

Summary

It can be said that the emergence of ORDI can enhance the value of Bitcoin, making Bitcoin not only a store of value, but also promoting the creation of more possibilities for the Bitcoin ecosystem and creating a better future for Bitcoin. The currency ecosystem brings new vitality and promotes the further development of the Bitcoin ecosystem.

Of course, for any emerging project or protocol, there are uncertainties in sustainability and market recognition. Against the current market background of the rapid rise of the cryptocurrency market, ORDI’s record high will also drive more changes. Many people are paying attention to the construction of the Bitcoin ecosystem, which is also of great help to the broader encryption ecosystem! But the last thing I want to say is that after the price of ORDI exceeded $80, the market is still full of expectations for the future development of the token. Some analysts believe that ORDI is expected to become the leader of the next round of BRC-20 meme currency bull market. However, investors also need to note that the cryptocurrency market is relatively risky and investment needs to be cautious.

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