- August 21, 2023
- Posted by: [email protected]
- Category:
Bitcoin Ordinals, a Bitcoin-based nonfungible token (NFT) platform, has experienced an alarming decline in trading activity, with trading volumes plummeting approximately 98% since May. DappRadar, a data analytics platform, has reported a significant drop in Bitcoin Ordinals’ user activity, underscoring concerns about the platform’s longevity and relevance in the NFT space.
According to DappRadar’s analysis, the total sales volume on Bitcoin Ordinals has sharply declined from its peak of $452 million in May to a mere $3 million as of August 14. Concurrently, the number of transactions on the platform also decreased by approximately 97%, with only 20,571 transactions recorded during the same period.
DappRadar acknowledged that this decline paints a grim picture for the Bitcoin Ordinals market but emphasized the need for more time to determine whether this is a temporary setback or a systemic issue plaguing Bitcoin-based NFTs.
The report highlighted the potential challenges facing Bitcoin Ordinals, particularly the divided sentiment within the Bitcoin community regarding the presence of NFTs on the Bitcoin network. Unlike Ethereum and other blockchains where NFTs have found widespread acceptance, Bitcoin’s role has primarily been seen as “digital gold” for storing value. The debate within the Bitcoin community about the role of NFTs on the network adds uncertainty to the platform’s future.
DappRadar’s analysis indicated that fewer traders are engaging with Bitcoin Ordinals, which raises concerns about its sustainability and relevance within the evolving NFT landscape. The report concluded by suggesting that the coming months will be crucial in determining whether Bitcoin Ordinals can establish a foothold in the NFT market or revert to their primary function as a store of value.
Currently, Bitcoin ranks seventh in terms of NFT sales volume over the past 30 days, with $14.6 million generated from 21,989 buyers, according to CryptoSlam data. The platform’s future will likely depend on its ability to navigate the ongoing debate and adapt to changing market dynamics.
