DappRadar has pointed to an “alarming plunge” in Bitcoin Ordinals nonfungible token (NFT) user activity, with trading volumes tanking around a whopping 98% since May.
In an Aug. 17 report, DappRadar highlighted its data showing that the total Bitcoin Ordinals sales volume had decreased from peak levels of $452 million in May to roughly $3 million as of Aug. 14.
In line with that drop, the number of transactions also declined by around 97% to 20,571 within that same period.
Ordinals trading volume and sales count. Source: DappRadar.
DappRadar described it as a grim scenario for the Ordinals market, but it emphasized that more time is required to determine whether this is a “temporary setback” or a “systemic problem of Bitcoin-based NFTs.”
“This steep decline in both sales volume and count within such a short period is alarming for Bitcoin Ordinals. The diminishing sales count underscores the waning enthusiasm or perhaps confidence in Bitcoin NFTs,” the report states. It adds:
“While fluctuations in sales volume could be attributed to market dynamics, a consistent decline in transaction count may point toward broader issues. It suggests that fewer traders are engaging with Bitcoin Ordinals, which could raise concerns about its longevity and relevance in the NFT space.”
Q2 saw a significant decline in the #NFT market, both in terms of trading volume and active wallets.
One of the biggest victims was #Bitcoin Ordinals, with sales down 97% since May.
Is this the end of Bitcoin NFTs?
— DappRadar (@DappRadar) August 17, 2023
The decline comes after a hype-filled second quarter for Bitcoin Ordinals, which saw trading volumes and user activity skyrocket compared to the first quarter of 2023.
DappRadar suggested that a key issue around the sustainability of Ordinals is that the Bitcoin community has a divided outlook on whether NFTs should be on the network or not, which isn’t an issue for Ethereum and other blockchains.
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