The “Ordinal NFT,” which sparked a 50% rally in STX earlier this week, has the potential to propel STX into a $1 billion token, Matrixport said Feb. 22. said in a daily report.
The Ordinals Protocol is a new protocol that allows NFTs to be stored on the Bitcoin blockchain, and STX is the native token of the Stux Network, a layer-2 blockchain that leverages the security of the Bitcoin blockchain to settle transactions.
Because Ordinal NFTs are minted directly on the blockchain, unlike traditional NFTs that can be modified by smart contract developers, they are “considered digital artifacts due to their permanence and immutability on a distributed ledger,” according to Matrixport Research & Development. Strategy officer Markus Thielen writes:
Matrixport points out that the idea of Bitcoin NFTs is not a new concept and has been developed on protocols such as Counterparty and Stacks. However, the recent hoopla about Ordinal NFTs led to a 50% rise in STX earlier this week.
The convergence of NFTs and the Bitcoin network will bring greater security, transparency and traceability. This has opened up a number of use cases and rekindled interest around these tokens. The number of newly minted Ordinal NFTs on the Bitcoin blockchain topped 100,000 last week, the report adds.
“Since Stacks can leverage the security of the Bitcoin blockchain to settle transactions, the network is well-positioned to develop decentralized finance (DeFi) applications for Bitcoin,” the report reads. ing. DeFi is a term that refers to various financial applications that run on the blockchain.
The report states that the STX network is beginning to realize its enormous potential, which could lead to further increases in STX.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Ordinals Protocol
｜Original: Ordinals NFTs Can Make Stacks’ STX a Multi-Billion Dollar Token: Matrixport
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