Bitcoin Sidechain Liquid Comes Back To Life Amid Ordinals Frenzy
The crypto industry was taken by surprise recently when Bitcoin sidechain Liquid came back to life during a frenzy of Bitcoin ordinals (which are processors of Bitcoin transactions).
The activity appears to be related to multiple anonymous entities creating and moving large amounts of funds on the Bitcoin network. They have been trading Bitcoin with what appears to be an off-chain option such as Liquid, as well as the Lightning Network.
The surge in the ordinal activity has caused Liquid’s volume to spike recently. Liquid offers traders the ability to conduct transactions more quickly and cheaply than on the Bitcoin blockchain.
The increase in Liquid’s volume comes as various crypto projects have launched products and services to make payments, exchanges, and other crypto activities more efficient.
The sudden emergence of Liquid amidst the Bitcoin ordinals frenzy has been welcomed by crypto traders. They are hopeful that it will help provide a more stable and secure system for trading, providing a more suitable environment for institutional trading.
Only time will tell whether Liquid will become firmly entrenched as a component of the crypto ecosystem and, if so, how it will evolve and adapt. However, its reemergence suggests that it may have a future role in the space.