Stamps is a blockchain protocol created by MikeInSpace that enables storing images on-chain on Bitcoin transaction outputs. It utilizes the Counterparty platform, a long-standing Bitcoin meta layer, to broadcast Stamping transactions to the Bitcoin Network. The protocol enables the creation of Bitcoin NFTs, especially low-resolution pixel art.
In our initial research paper, we dived into the details of the Stamps Protocol, accessible via this link. We cordially recommend studying the comprehensive report.
Our monthly update reviews important milestones and developments in September 2024. If you missed our last reports, please visit this link to catch up.
In October 2024, Stamps Protocol transactions decreased by approximately 12%, totaling 32,914 transactions compared to the previous month. This figure represents the second-lowest monthly number of transactions for the year, with the lowest being in April 2024, which recorded only 15,151 transactions. September had a higher count, with 37,234 Stamps-related transactions. By the end of October, the total of Stamps-related transactions reached 775,063.
In October, the number of Classic Stamps minted increased slightly compared to September, with 186 minted this month compared to 136 last month. However, SRC-721 only recorded three transactions in October. Since June 2024, transactions for SRC-721 have declined, averaging only 12 monthly transactions.
In the past month, 'TRANSFER' operations comprised 97% of all SRC-20 transactions. There were 33 new token 'DEPLOY' transactions, an increase from 17 the previous month. The top five tokens involved in 'TRANSFER' operations accounted for approximately 61% of all transfer transactions during this period. A total of 101 tokens executed 'TRANSFER' operations. Additionally, 33 tokens had 'MINT' transactions.
The total number of SRC-20 token deployments reached 1,525 by the end of October 2024.
All but one of the 189 stamps were OLGA stamps. As a result, the total count of OLGA stamps increased to 5,297 by the end of October 2024. It is noteworthy that there was one legacy stamp mint, identified as Stamp ID - 757253.
The percentage of SRC-20 mints rose to 92.4% of the total Stamp transactions, while the percentages for SRC-721 and Classic Stamps type mints rose to 4.2% and 3.3%, respectively. There have been 25,658 Classic Stamps mints and 32,911s SRC-721 mints.
An interesting trend is emerging where the category of blocks containing between 10 and 40 Stamps transactions is gaining ground on the previously leading category of blocks with fewer than 10 Stamps transactions. The highest recorded number of Stamps transactions in a single block is 975.
By the end of October 2024, the size of the Bitcoin blockchain increased by 7.69 GB, reaching a total of 612.06 GB. The Stamps Protocol contributed to this growth, accounting for 0.19% of the overall increase by adding 14.68 MB of data during the month. To date, Stamps has contributed a total of 0.35 GB to the blockchain, representing approximately 0.06% of the entire network's size.
In the past month, the average transaction fee rose slightly to 8.45 Sats/Byte, up from 6.77 Sats/Byte in the previous month. However, when we compare this to historical average fee levels, October still stands out as very economical; in fact, it was the third cheapest month for conducting Stamps transactions.
The most data-intensive Stamp transaction in the month involved 1,810 outputs to store 78,120 bytes of data. The most expensive transaction incurred $173.17 in miner fees. The latter was an SRC-20 transaction.
In October, Stamps transactions generated a total of 1.30 BTC in fees paid to Bitcoin miners, which is consistent with the total fees from September. However, the October fees were the lowest recorded in the past 11 months. Since the start of Stamps transactions, the overall fees earned by miners from including these transactions in Bitcoin blocks have reached 226 BTC, equivalent to USD 10.2 million.
The recent introduction of the P2WSH encoding method as an alternative to the multi-sig method for SRC-20 transactions has led to a noticeable increase in its adoption. This month, there were 76,735 outputs utilizing both methods, contributing a total of 0.44 BTC in dust. In comparison, OLGA-Stamps accounted for 7,386 outputs.
By the end of October, 22.10 BTC worth of dust had been utilized in Stamps transactions. This amount is approximately USD 1.52 million (or USD 1.8 million at the current market price of BTC).
The table below presents the multi-sig (and P2WSH used by SRC-20) and representative dust values up to October 10, 2024.
In the month, no change in the developer fund. The current balance of the Stamps Development Fund is 0.11833338 BTC ($9,521.93). The fund has benefited from the recent Bitcoin price increase (BTC).
Following the latest major update (v10.4.0), the Counterparty software received several fixes to address various issues that arose.
The recent rally in the crypto assets market has sparked a surge of interest in memecoins. Many communities have seized this opportunity, bringing several memecoins into the spotlight. While we are not taking a stance on whether memecoins are good or bad, we wonder if there was a missed opportunity to promote the SRC-20 standard during this current memecoin frenzy. Nevertheless, it did not gain traction. Whether this was a lost opportunity for raising awareness of SRC-20 or a blessing in disguise that ultimately benefits the Stamps community remains to be seen. Only time will tell!
We value your feedback and strive to enhance our content and offerings based on your suggestions. Let us know what you enjoyed about this report and if there is anything we may have overlooked. We're eager to receive feedback and encourage you to share your thoughts with us at research@sqrr.xyz..
The document generated by SQRR is for informational purposes only and should not be considered financial, investment, or legal advice, or an offer or the solicitation of an offer to buy or sell securities or other assets. Users of this document should always do their independent research before making any decisions. Furthermore, SQRR is not responsible for any errors or omissions, nor for any loss or damage of any kind, including without limitation any direct, indirect or consequential loss or damage, arising out of or in connection with the use of this document. Any decisions based on information contained in this document are the sole responsibility of the reader.
No guarantee is made for the accuracy or completeness of any information provided in the document. Any opinions, estimates, or recommendations expressed herein are subject to change without notice and constitute judgment as of the date of publication.
In this report, any mention of a particular project, commercial product, process, brand, or service, or the use of any trade, firm, or corporation name is solely for the purpose of providing information and convenience to the readers. It should not be interpreted as an endorsement, recommendation, or preference by SQRR.