Recent months have witnessed a surge in NFT activity on the Bitcoin network, shifting from initial community skepticism to active participation. According to data from Dune Analytics, over 33,517 NFT collectibles have been minted on Bitcoin, with 12,102 created on February 9 alone.
Among these, Bitcoin Punks—a project built on the Ordinals protocol—completed its minting process on February 9, releasing 10,000 unique digital artifacts. The team is currently verifying inscriptions and confirming the first upload node for each Punk. A final JSON mapping for the entire collection is expected to be recorded on the Ordinals protocol within 24 hours.
Bitcoin Punks claims to be the first project to successfully inscribe the original Ethereum CryptoPunks onto the Bitcoin blockchain using Ordinals. The team is cross-referencing each image’s hash with the original 10,000 Punk images to ensure authenticity. The lowest inscription ID containing a matching hash will be officially recognized as the valid Bitcoin Punk.
How to Mint Bitcoin Punks
Minting Bitcoin Punks involves multiple steps:
- Download the Sparrow wallet and create both a Native Segwit (P2WPKH) and a Taproot (P2TR) wallet.
- Visit the Bitcoin Punks website to locate an unminted Punk ID.
- Download the corresponding Punk image from cryptopunks.app.
- Upload the image via the Ordinals Bot—a full-node service—and pay the fee using the Native Segwit wallet.
- Receive the inscribed NFT in the Taproot wallet.
Payment options include both the Lightning Network for faster transactions and the standard Bitcoin network. The estimated cost for minting is around $25. However, there is currently no over-the-counter (OTC) marketplace for trading these assets.
One significant challenge is the risk of duplicate minting attempts. Since Bitcoin transactions can be slow to confirm, multiple users might attempt to inscribe the same Punk ID. Only the earliest confirmed transaction will succeed, leaving others with a failed mint despite having paid the fee.
Market Hype and Reality
Some Twitter influencers have claimed that Bitcoin Punks are selling for over 1 BTC—a 100x increase from the minting cost. However, investigations reveal no confirmed sales so far. The absence of a buyer market suggests that these reported gains may be exaggerated. 👉 Explore real-time NFT market data
The State of Bitcoin NFTs
The Ordinals protocol, launched by software engineer Casey Rodarmor on January 21, 2023, enables the creation of NFTs—referred to as "digital artifacts"—on the Bitcoin blockchain. These can include images, PDFs, videos, and audio files. Since its introduction, Ordinals-based NFT activity has grown significantly, with image-based content leading the trend.
Bitcoin Rock
Bitcoin Rock, with a supply of 100 units, was the first NFT project on Ordinals. The CEO of Forgotten Runes Wizard’s Cult purchased one for 0.2 BTC. Current reports suggest prices have risen to 1 BTC per Rock. The team has also donated 10 BTC to support the Ordinals development team.
Ordinal Punks
Ordinal Punks is a collection of 100 profile pictures (PFPs) inscribed within the first 650 Ordinals. Minting took place on February 1 at a cost of 0.01 BTC per Punk. The first sale was recorded at 0.07 BTC, with the highest reaching 9.5 BTC (approximately $241,000). So far, over 30 transactions have occurred.
Prominent NFT collector dingaling recently acquired seven Ordinal Punks for 15.2 BTC, emphasizing the historical significance of early inscription IDs.
Other projects like Bitcoin Shrooms and Shadow Hats have also emerged, though minting has not yet begun.
Cross-Chain Interest
Projects like On the Edge of Oblivion—originally launched on Ethereum with promises of Bitcoin chain integration—have also gained traction. Its floor price rose to 2.4 ETH, with trading volume exceeding 1000 ETH, reflecting growing interest in Bitcoin-based NFTs.
Infrastructure Challenges
The infrastructure for Bitcoin NFTs is still in its infancy. Unlike Ethereum, minting requires technical knowledge—including setting up specific wallet types, understanding payment methods, and syncing with the Bitcoin full node.
Trading is also cumbersome. There are no peer-to-peer marketplaces like OpenSea; instead, trades occur via shared spreadsheets or OTC deals, increasing the risk of fraud.
The Ordinals Bot has simplified minting for many users, but issues remain. For instance, users may pay fees even if minting fails due to network delays.
Network Impact
Ordinals inscriptions have significantly increased Bitcoin’s block size, which recently hit a three-year high. On February 7, about 50% of Bitcoin’s block space was used for inscriptions, leading to full blocks but lower median transaction fees.
Community Debate
The Bitcoin community is divided on Ordinals. Some believe NFTs expand Bitcoin’s use cases, increase transaction fees, and support miner revenue post-halving. Others argue it deviates from Satoshi’s vision of a peer-to-peer cash system and unnecessarily congestes the network.
Looking Ahead
Many new users enter the Web3 space without prior Bitcoin experience. Protocols like Ordinals and Nostr introduce new utilities and draw attention to the Bitcoin ecosystem. While still early, these developments encourage broader adoption and experimentation.
As user interest and financial incentives grow, infrastructure will improve through competition and innovation. However, users should exercise caution: many early projects are experimental, and thorough research is essential to avoid losses.
Frequently Asked Questions
What is the Ordinals protocol?
The Ordinals protocol allows users to inscribe data such as images, audio, or text onto individual satoshis, creating Bitcoin-based NFTs known as digital artifacts.
How do I mint a Bitcoin NFT?
You need a Bitcoin wallet that supports Taproot, access to a full node or service like Ordinals Bot, and Bitcoin to pay transaction fees. The process is more technical than minting on Ethereum.
Can Bitcoin NFTs be traded easily?
Not yet. Most trading occurs over-the-counter or via informal channels due to the lack of dedicated marketplaces. 👉 Learn more about NFT trading strategies
Are Bitcoin NFTs secure?
While the Bitcoin blockchain is secure, the ecosystem around NFTs is new. Users must be cautious about scams, failed transactions, and technical complexity.
What is the impact of Ordinals on Bitcoin fees?
Ordinals can increase network congestion, which may raise transaction fees. However, recent data shows median fees have decreased despite high block space usage.
Is there a future for NFTs on Bitcoin?
It’s still early, but growing interest and developer activity suggest that Bitcoin NFTs may become a sustainable niche within the broader digital collectibles market.