Bitcoin Ordinals, the once-heralded platform for NFT trading, has seen its trading volume and sales count plummet by over 97% since May 2023, according to a recent report by DappRadar released on August 17. This alarming downturn has raised concerns about the sustainability and future relevance of Bitcoin NFTs, as the broader NFT market faces challenges amid shifting dynamics.
Bitcoin Ordinals rose to prominence during Q2 2023 by introducing the novel concept of generating NFTs through inscribing, a move that expanded Bitcoin’s capabilities to include NFTs and smart contracts. The platform garnered significant attention in May, recording an impressive $452 million in sales, which marked the peak of its popularity.
However, the subsequent months have painted a bleak picture for Bitcoin Ordinals. The report highlights a steep decline in both sales volume and sales count since its zenith in May. June witnessed a dramatic drop of 76.5% in sales volume, amounting to $106 million, coupled with a 60.3% decrease in sales count, settling at 330,121 transactions.
July further intensified the downward trend, with sales volume plummeting by 66.9% to $35 million, and transactions dropping by 47.6% to 172,956. August’s early data paints an even grimmer scenario, showcasing a sales volume contraction of 91.4% to a mere $3 million, accompanied by a startling 88.1% decline in transactions, totaling just 20,571.
Ordinals Trading Volume and Sales Volume
What’s especially concerning for Bitcoin Ordinals is the consistent decline in transaction count, which suggests a potential waning enthusiasm or lack of confidence in Bitcoin-based NFTs. While fluctuations in sales volume could be attributed to market dynamics, a persistent reduction in transaction count could indicate more profound issues at play. This trend raises questions about the platform’s longevity and relevance in the competitive NFT landscape.
Comparatively, Ethereum and Polygon, though facing their own challenges, have demonstrated more resilience in their NFT trading activity. From February to mid-August 2023, Ethereum’s number of unique active wallets trading NFTs decreased by 22%, while Polygon experienced a steeper decline of 60%. However, these drops are less pronounced compared to Bitcoin Ordinals’ staggering 90% reduction in the same period.
After a meteoric ascent from 696 Unique Active Wallets (UAW) in February to a peak of 79,261 in May, Bitcoin Ordinals has faced a swift decline. Nevertheless, the trend has taken a sharp turn post-May, plummeting to 40,932 in July and hitting a trough of 6,708 during the initial half of August. While Ethereum and Polygon’s NFT domains have shown greater resilience, they too have encountered challenges within the market’s fluctuations.
NFT-related on-chain activity registered from February to August 2023
The report emphasizes that Ethereum and Polygon possess a more established reputation and broader applications within the NFT sector, making them less susceptible to dramatic market shifts. Additionally, it’s worth noting that Bitcoin NFTs are primarily concentrated on Profile Picture NFTs (PFPs), which generally have limited use cases compared to the diverse range of NFTs on Ethereum and Polygon.
The report also sheds light on the sentiment surrounding Bitcoin Ordinals within the community. While some view the initial hype around Bitcoin Ordinals as unsustainable, others contend that Bitcoin’s primary function should remain as a store of value, rather than delving into the NFT realm. This divergence in views reflects the ongoing debate about Bitcoin’s role in the rapidly evolving digital economy.
In conclusion, the decline of Bitcoin Ordinals’ trading activity underscores a pivotal testing period for the sustainability and future relevance of Bitcoin-based NFTs. As the NFT market navigates challenges and shifts in dynamics, it remains to be seen whether this setback is a temporary stumbling block or a sign of more profound issues for the platform. The coming months will undoubtedly provide valuable insights into the trajectory of Bitcoin NFTs in the broader NFT landscape.
Source: https://azcoinnews.com/bitcoin-ordinals-witness-astonishing-97-plunge-in-trading-volume-and-sales-count-since-may-2023.html
