Binance Halts Support for Bitcoin Ordinals
Binance NFT markets will no longer support Bitcoin Ordinals as per a new report. It means that the platform has halted support for Bitcoin-based NFTs only a few months after the service was introduced.
Binance confirmed the seizure in a recent blog post. The firm further noted in the post about efforts to streamline products on the Binance NFT market.
Binance officials claim that the trading platform has halted support for trades and deposits of Bitcoin Ordinals starting from 18th April. The firm notified investors to withdraw their Bitcoin-based NFTs from the Binance NFT Marketplace using a Bitcoin network before 18th of the ongoing month. At the same time, Binance will halt airdrops, benefits, and utilities associated with Bitcoin starting from 10th April, 2024.
Bitcoin Ordinals or Bitcoin NFT platform lets investors inscribe digital content such as artwork, text, or videos on the Bitcoin blockchain. The minted data becomes part of the Bitcoin protocol in the form of NFTs.
Bitcoin Ordinals gained popularity among investors in 2022. This platform brings unique digital art to directly host on Bitcoin transactions in the same manner as Ethereum-based NFTs.
Binance Asks Runestone NFT Investors to Withdraw Holdings
Binance has also sent a special notification to Runestone NFT investors who qualify for an upcoming airdrop to withdraw their tokens before 10th April.
Investors are advised to withdraw these NFTs before 10th April to make sure that they have an opportunity to receive associated tokens, utilities, and advantages after the deadline as mentioned in the blog post. The decision to halt Bitcoin Ordinals support was a surprise for investors.
Binance added support for the popular protocol in May 2023, with a promise to bring exciting trading opportunities for investors. However, the high transaction volume generated from NFT transactions obstructed the Bitcoin network various times since its introduction.
At the same time, the protocol is also attributed to rising trading fees and slowing transaction processing on account of more transactions lining up for verification.
Dune Analytics noted that Ordinals has 64 million inscriptions thus far and generated more than $423 million in transaction fees. Binance Labs recently shifted focus towards the DeFi sector after investing in Bitcoin-based restaking protocol called BounceBit. The protocol merges CeFi and DeFi features to introduce more utility for Bitcoin.
Binance Labs to Invest in Bitcoin DeFi Protocols
BTCFi protocols are gaining more popularity in the pretext of the upcoming halving on 19th April. A new Cointelegraph article compares the impact of Bitcoin-DeFi with Ethereum-DeFi protocols. Binance Labs is the VC wing of the trading platform.
The firm announced restaking protocol called BounceBit in an effort to add more utility to Bitcoin as per Yi He, co-founder of Binance and head of Binance Labs.
The executive noted in a new statement that the protocol unlocks new avenues for Bitcoin utilization and introduces CeDeFi solutions. BounceBit is one of the new protocols on the Bitcoin blockchain pointing towards the paradigm shift called BTCFi.
The executive noted that these protocols will transform Bitcon from a store of value to yield-generating asset with higher capital efficiency.
The proof-of-stake layer-1 ecosystem incentivized validators to stake Bitcoin and BounceBit tokens as part of its dual-token economy. BouncBit CEO noted that the mission of the protocol is to drive Bitcoin utility in a secure and transparent manner.
He stated that CeDeFi will morph into an effective re-staking protocol that will continue to evolve in association with Binance Labs.
Bitcoin-based DeFi Protocols
Bitcoin-based DeFi protocols were considered impossible in previous years. However, in the last few months developers have converted the concept into a reality as a way to gain traction before the highly anticipated Bitcoin Halving set to take place this month.
DEX MerlinSwap raised 6,599 Bitcoins valued at $480 million during an IDO on 5th April. The IDO success is proof of rising demand for BTCFi that may go head to head with Ethereum-based DeFi ecosystem. MerlinSwap co-founder Nash Lee spoke with journalist from Cointelegraph noting that the protocol stands for the demand and drive for the DeFi ecosystem on Bitcoin.
