This week, Ordinals and its token ORDI became a central topic across the cryptocurrency industry. According to CoinGecko data, ORDI is currently priced at $56.17, marking a 7-day increase of 187%. From its initial price of $0.003, the token has surged nearly 20,000 times.
However, alongside this surge, ORDI also experienced sharp declines within just two days. On December 6 around 11:00, the price dropped almost vertically from $63.26 to $43.59. Later, on December 7 around 2:00, it fell from its all-time high of $68.37 to $56.17.
What happened during this period?
ORDI's Meteoric Rise to a $1 Billion Market Cap
Signs of ORDI's upward movement began to appear around December 2. Although the initial increase was modest, the token climbed from $21.19 in the early hours of December 2 to $32.8 by around 5:00 on December 3, a gain of 54.8%.
Then, starting around 15:00 on December 5, ORDI began to soar, rising almost vertically from $50 to $65 by approximately 18:00 the same day.
On December 5, CoinGecko reported that ORDI's market capitalization surpassed $1 billion, reaching $1,053,372,018. This achievement positioned it as the 59th largest token by market cap and the first Bitcoin-based inscription project to cross the $1 billion threshold.
In addition, CoinDesk released its 2023 Most Influential list on December 5, naming Bitcoin Ordinals founder Casey Rodarmor as the top figure—a topic that sparked widespread community discussion.
Furthermore, Blockworks Research data from December 4 indicated a record-breaking 8.34 million Ordinals-related transactions in November, generating approximately $38.7 million in revenue for Bitcoin miners.
But the unexpected plunge was just around the corner.
The Sharp Drop: Inscriptions Under Fire
Around 11:00 on December 6, ORDI began a steep descent from $63.26, bottoming out at $43.59 by 20:00 that evening—a drop of 31%. The reasons behind this decline began to surface earlier that morning.
At around 10:00 on December 6, Ordinals founder Casey Rodarmor addressed questions about the legitimacy of Rune Alpha, stating that the project was not affiliated with him and that such runes would not be recognized retroactively upon the official release of Runes.
This statement was aimed at Rune Alpha, a newly launched Bitcoin inscription project. When Rune Alpha announced its mainnet launch on December 5, many in the community mistakenly believed it was associated with Casey.
However, the real negative news for ORDI came from Bitcoin Core developer Luke Dashjr.
Around 9:00 on December 6, Luke posted on social media, claiming that "inscriptions" were exploiting a vulnerability in the Bitcoin Core client to spam the blockchain. He explained that since 2013, Bitcoin Core has allowed users to set limits on additional data size when relaying or mining transactions. By disguising data as program code, inscriptions bypassed this limit.
Luke mentioned that the vulnerability had been fixed in Bitcoin Knots v25.1 but remained unaddressed in the upcoming Bitcoin Core v26 release. He expressed hope that it would be resolved before v27 next year.
He further stated that if the vulnerability were fixed, Ordinals and BRC-20 would cease to exist.
Subsequently, ORDI's price began to fall sharply, leading to significant long liquidations across the market by approximately 13:00 on December 6. Coinglass data showed that within an hour starting from 13:00, total liquidations reached $24.47 million, mostly long positions, with ORDI accounting for $3.66 million in liquidations.
Amid the decline, some traders managed to avoid losses. Lookonchain monitoring revealed that a whale address sold 59,000 ORDI tokens just before Luke's critical post, realizing a profit of $2.3 million. This address had withdrawn 65,263 ORDI (worth $1.3 million) from Binance on November 22 when the price was $20.
A Partial Reversal: Community Pushback and Recovery
Following Luke's post, as ORDI's price continued to drop, community discussions about Bitcoin Core developers' authority grew louder, with many voicing criticism and opposition.
Perhaps in response to the growing backlash, Luke showed signs of softening his stance around 00:00 on December 7. In a discussion with community members, he stated, "We don't necessarily have to eliminate all inscriptions to provide value to Bitcoin."
ORDI's price immediately reacted, rising from $45.66 at around 23:00 on December 6 to $68.37 by 02:00 on December 7—marking a new all-time high for the token.
However, Luke continued to engage. When a user accused him of wanting to launch his own project for profit without caring about the prosperity of the Bitcoin ecosystem, Luke responded around 04:00 on December 7: "We might make more money if we give in, but our company is set up to put Bitcoin's interests first. Spam attacks are not economical."
His implied message was that while he might not seek to eliminate all inscriptions, he would not fully yield either.
After this, ORDI experienced a slight correction, falling from $67.07 to the current $56.17. Coinglass data indicates that, at the time of writing, ORDI's total liquidations have reached $25.31 million, ranking just behind BTC and ETH.
Behind ORDI's volatile price movements, multiple消息面 and forces have interplayed, bringing the token back to around $56. The future developments of the Ordinals protocol and ORDI will continue to be closely watched.
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Frequently Asked Questions
What is ORDI?
ORDI is the native token of the Ordinals protocol, which enables the creation of digital artifacts and inscriptions on the Bitcoin blockchain. It has gained significant attention due to its rapid price appreciation and role in the Bitcoin ecosystem.
Why did ORDI's price drop suddenly?
The price decline was primarily triggered by statements from Bitcoin Core developer Luke Dashjr, who suggested that inscriptions exploit a vulnerability in Bitcoin Core and might be eliminated in future updates, causing market uncertainty and liquidations.
What are Bitcoin inscriptions?
Bitcoin inscriptions involve embedding data like images, text, or code into individual satoshis (the smallest unit of Bitcoin) using the Ordinals protocol. This allows users to create unique digital assets on the Bitcoin network.
Is the Ordinals protocol safe?
The Ordinals protocol operates within the Bitcoin network, but its longevity depends on network updates and community consensus. Recent discussions about vulnerabilities have raised questions, but the protocol continues to function as developers debate potential changes.
Can ORDI reach new all-time highs?
Market dynamics, developer decisions, and broader cryptocurrency trends will influence ORDI's price. While past performance has been volatile, ongoing developments in the Bitcoin ecosystem could provide future opportunities.
How can I stay updated on ORDI news?
Following reliable cryptocurrency news sources and official project channels is essential for timely updates on ORDI and the Ordinals protocol.