BRC-20 Inscriptions Fuel UTXO Growth, Straining Bitcoin Nodes More Than Ordinal Images
A BitMEX Research study compares the impact of BRC-20 token inscriptions and Ordinal image inscriptions on Bitcoin full nodes. From October 2022 to September 2025, BRC-20 transactions accounted for 92.5 million inscriptions (27.8 GB, 13.9 M weight units), while Ordinal images made up only 2.7 million inscriptions (30 GB, 8.9 M weight units). Despite larger data volumes, Ordinal images benefit from witness data discounts and skip signature verification, slightly easing node validation. In contrast, BRC-20 inscriptions, structurally similar to regular transactions, inflate the UTXO set from 84 million to 169 million outputs and incur higher byte-based fees, raising node storage and memory costs. Performance tests on Bitcoin Core v29.1 show negligible correlation between inscription data size and block validation speed once signature checks are enabled. The research concludes that while large Ordinal image data may marginally offset their space usage, BRC-20 inscriptions pose greater operational challenges for node runners by expanding the UTXO database and increasing resource requirements.
Neutral
The report delivers a technical analysis of inscription types on node operations rather than market-moving news. It highlights increased storage and UTXO costs for nodes due to BRC-20 inscriptions but does not directly affect Bitcoin’s price dynamics. Historical precedents, such as Taproot activation and the initial Ordinals surge, led to protocol upgrades without lasting bullish or bearish price trends. Traders should see this as a neutral development: important for node operators, but unlikely to trigger significant short-term or long-term market moves.