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Summarize

Ordinals Analyses [September 2023]

To conduct the analyses, I downloaded 2 csv files from Dune — Daily Inscriptions by type and Inscription spending for the last 240 days.

Based on the data from the two spreadsheets, I got the following variables:

The first CSV file (Daily Inscriptions by type) contains the following columns:

  1. time
  2. major_type
  3. daily_mints
  4. spending
  5. cum_image
  6. cum_text
  7. cum_json
  8. cum_other
  9. cum_brc20_mint
  10. cum_brc20_transfer
  11. cum_brc20_total
  12. cum_total

The second CSV file (Inscription Spending) contains the following columns:

  1. time
  2. cnt_ordinals
  3. cumulative_inscriptions
  4. ordinal_fees_usd
  5. ordinal_fees_btc
  6. cumulative_fees_usd
  7. cumulative_fees_btc

From here, we can proceed with the following analyses: Trend analysis, type analysis, spending analysis, cumulative analysis, spending vs type analysis.

1. Trend Analysis

  • Question: How has the daily number of inscriptions (daily_mints from Spreadsheet 1) changed over time? Is there a specific trend, seasonality, or pattern?
  • Why it’s important: Understanding trends can help identify periods of increased activity or potential future growth.
  • We observed that the daily inscriptions exhibit fluctuations over time.
  • The 7-day rolling average provided a smoother representation of the trend, filtering out short-term fluctuations and highlighting the underlying pattern.
Trend — Daily Inscriptions and a 7 day rolling average.
  • Decomposition analysis revealed the trend, seasonal, and residual components. Although there wasn’t a strong identifiable seasonality, the trend component was clear.
  • The introduction of various major_type inscriptions impacted the number of daily inscriptions. Notably, the introduction of "bitstamp" and "brc-20 mint" resulted in significant spikes.
The first of each kind of inscription.

2. Type Analysis

  • Question: Which major_type of inscription (e.g., image, text, json, etc. from Spreadsheet 1) is the most popular over time, and how do inscription types relate to spending (spending from Spreadsheet 1)?
  • Why it’s important: Recognizing the most popular types can guide focus and potentially optimize revenue.
majority effort.
  • Various major_type inscriptions began at different times, with each having varying impacts on the overall number of inscriptions.
brc-20 wave.
  • The introduction of “bitstamp” marked a significant rise in daily inscriptions. Similarly, “brc-20 mint” and “brc-20 transfer” influenced the daily inscriptions considerably.
  • At the end of April and the start of May 2023, the “brc-20 mint” dominated the inscriptions.

3. Spending Analysis

  • Question: How does the daily inscription spending (ordinal_fees_usd and ordinal_fees_btc from Spreadsheet 2) correlate with the number of daily inscriptions (daily_mints from Spreadsheet 1)?
  • Why it’s important: This can provide insights into the economic value of inscriptions and help in revenue forecasting.
  • We aimed to analyze the correlation between daily inscriptions (daily_mints) and spending (ordinal_fees_usd and ordinal_fees_btc).
  • Due to visualization challenges, we couldn’t derive a definitive pattern between spending and inscriptions, but the merged data indicates potential for deeper correlation analysis.

4. Cumulative Analysis

  • Question: How does the cumulative number of inscriptions (cumulative_inscriptions from Spreadsheet 2) relate to the cumulative fees (cumulative_fees_usd and cumulative_fees_btc from Spreadsheet 2)?
  • Why it’s important: Understanding the relationship between overall volume and revenue can help in long-term planning and valuation.
I mean it was pretty obvious, wasn’t it?
  • We observed the cumulative growth of inscriptions over time.
  • The cumulative count showed steady growth, with notable inflection points aligning with the introduction of specific major_type inscriptions.

5. Spending vs. Type

  • Question: For each major_type of inscription, what is the average spending (spending from Spreadsheet 1)? Which type generates the most revenue?
  • Why it’s important: Identifying high-revenue types can guide business strategy and marketing efforts.
Spending for each type of inscription.

orc-20:

  • Average Spending (USD): ~$398,810.80
  • Average Spending (BTC): ~14.29 BTC

brc-20 transfer:

  • Average Spending (USD): ~$326,933.11
  • Average Spending (BTC): ~11.71 BTC

brc-20 mint:

  • Average Spending (USD): ~$288,617.74
  • Average Spending (BTC): ~10.36 BTC

sns:

  • Average Spending (USD): ~$274,138.09
  • Average Spending (BTC): ~9.85 BTC

json:

  • Average Spending (USD): ~$266,504.13
  • Average Spending (BTC): ~9.60 BTC

Excited to make more of these as time goes!

Bitcoin Ordinals
Bitcoin
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