DappRadar has pointed to an “alarming plunge” in Bitcoin (
$110,171.00 ) 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 ( $110,171.00 ) 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 ( $110,171.00 ) -based NFTs.”
“This steep decline in both sales volume and count within such a short period is alarming for Bitcoin ( $110,171.00 ) Ordinals. The diminishing sales count underscores the waning enthusiasm or perhaps confidence in Bitcoin ( $110,171.00 ) 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 ( $110,171.00 ) 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 ( $110,171.00 ) Ordinals, with sales down 97% since May.
Is this the end of Bitcoin ( $110,171.00 ) NFTs?
DappRadar exploreshttps://t.co/v0ouv9uwVJ
— DappRadar (@DappRadar) August 17, 2023
The decline comes after a hype-filled second quarter for Bitcoin ( $110,171.00 ) 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 ( $110,171.00 ) community has a divided outlook on whether NFTs should be on the network or not, which isn’t an issue for Ethereum (
$0.00 ) and other blockchains.
Related: Bitcoin ( $110,171.00 ) Ordinals team launches nonprofit to grow protocol development
“There are voices within the community that view Bitcoin ( $110,171.00 ) primarily as ‘digital gold,’ suggesting that its primary function should remain as a store of value. On the other hand, Ethereum ( $0.00 ) is often referred to as ‘digital oil,’ indicating its role in fueling the digital economy,” the report reads, adding:
“The coming months will be crucial in determining whether Bitcoin ( $110,171.00 ) finds a foothold in the ever-evolving NFT landscape or reverts to its primary role as a store of value.”
According to CryptoSlam data, the Bitcoin ( $110,171.00 ) network is currently ranked seventh in terms of NFT sales volume over the past 30 days, with $14.6 million generated from 21,989 buyers.
Top 10 blockchains in terms of 30 day NFT sales volume. Source: CryptoSlam.
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