Bitcoin Core Removes OP_RETURN Limit in Next Update – Coincu

Bitcoin Core developers will lift the 80-byte limit on OP_RETURN in the next update, as announced by Greg Sanders on GitHub on May 5, 2025.

This change could transform data storage methods on the Bitcoin blockchain, although market reactions remain stable and community opinions are divided.

Bitcoin Core’s Bold Move: Unrestricted OP_RETURN

The Bitcoin Core development team, led by Greg Sanders, is lifting the 80-byte OP_RETURN limit. Announced on May 5, 2025, this change facilitates more data storage options on the blockchain. Sanders stated, “The next version will relay and mine transactions with larger OP_RETURN outputs by default.” Additionally, he mentioned that “the original 80-byte limit was intended as a gentle signal that block space should be used sparingly for non-payment proof of publication data but that this limitation has outlived its utility.”

The broader implications of removing the OP_RETURN byte limit include potential shifts in how data is stored on the blockchain. Projects using Bitcoin for data-related services may benefit from the unrestricted data capacity, though critics fear a shift from Bitcoin’s primary monetary role.

Community and market responses highlight the division, with Marty Bent arguing there’s “no consensus.” Despite the controversy, Bitcoin prices held steady following the announcement, suggesting investors see minimal short-term risk.

Bitcoin’s Evolving Role: Price Stability Amid Controversy

Did you know? In 2014, Bitcoin developers temporarily reduced the OP_RETURN limit from 80 to 40 bytes before restoring it, reflecting ongoing debates over blockchain data usage.

Bitcoin’s current price stands at $94,452.15, with a market cap of $1.88 trillion and a market dominance of 63.89%, according to CoinMarketCap. The circulating supply is 19,860,831 out of a maximum 21 million. Prices have fluctuated, rising 13.54% over 30 days. Recent 24-hour trading volume is $22.64 billion, a 5.14% change with a slight price decline of 0.26%.

Coincu research suggests that the removal of the OP_RETURN limit could accelerate broader adoption of Bitcoin beyond monetary use, increasing demand for blockchain-based applications. However, it might also spur regulatory scrutiny due to Bitcoin’s evolving role in data storage.