The world of cryptocurrency has been set ablaze with the recent surge in transaction volume on Litecoin (LTC) and Dogecoin (DOGE), thanks to the introduction of the Ordinals protocol. The protocol, which was initially created by developer Casey Rodarmor to “inscribe” text and imagery on the Bitcoin (BTC) network, has now been ported to these two popular alternative cryptocurrencies. The surge in transaction volume has been so significant that it has broken records on both networks, with Dogecoin hitting a new record of 1.2 million transactions in a single day and Litecoin reaching its highest ever daily transaction volume of 584,000 transactions.
The introduction of the Ordinals protocol on Litecoin was made possible by pseudonymous Twitter user Indigo Nakamoto, who offered 5 LTC (worth approximately $500 at the time) to anyone who could “port” the protocol to the Litecoin network. Software engineer Anthony Guerrera succeeded in this task, launching the Litecoin Ordinals protocol on February 19. Similarly, Dogecoin enthusiasts copied the protocol to create the same functionality on their network, calling it “Doginals”. However, it was the introduction of the LRC-20 and DRC-20 token standards in early May that really drove network activity on Litecoin and Dogecoin to new heights. These token standards allowed users to create and issue entirely new memecoins on the two networks, leading to a monumental influx of activity.
Interestingly, the surge in activity on Litecoin and Dogecoin came around the same time that the Ordinals inscription on the Bitcoin network went into overdrive, with a record 400,000 daily inscriptions on May 10. This uptick in Bitcoin Ordinals inscriptions can be directly attributed to the introduction of the BRC-20 token standard, which has seen over 24,000 new tokens minted on the Bitcoin blockchain. This has led some to argue that Ordinals has turned Bitcoin into a worse version of Ethereum, and that something needs to be done to fix it.
Despite these concerns, the Ordinals protocol has clearly struck a chord with cryptocurrency enthusiasts and has led to a surge in activity on multiple networks. As the world of cryptocurrency continues to evolve, it will be interesting to see how this protocol and others like it continue to shape the industry.