Bitcoin Ordinals, a notable player in the NFT sector, has experienced a substantial decline in trading volume, prompting concerns about its future. Data from DappRadar reveals a staggering 98% drop in trading volumes since May, coupled with a 97% decrease in transactions. The sales volume, once at a peak of $452 million in May, has dwindled to approximately $3 million by August 14.
Ordinals trading volume and sales count. Source: DappRadar
This plummeting activity has raised questions about the longevity and relevance of Bitcoin Ordinals in the NFT space. While fluctuations in sales could be attributed to market dynamics, a consistent decline in transaction count suggests deeper issues. DappRadar notes that the waning enthusiasm for Bitcoin NFTs could pose a challenge to the Ordinals market.
The decline follows a highly hyped Q2, during which Bitcoin Ordinals witnessed a surge in trading volumes and user engagement. The sustainability of Bitcoin Ordinals faces a unique challenge due to the divided opinions within the Bitcoin community about the role of NFTs on the network.
Top 10 blockchains in terms of 30 day NFT sales volume. Source: CryptoSlam
In contrast to other blockchains like Ethereum, where NFTs are widely embraced, the Bitcoin community holds divergent views. Some view Bitcoin primarily as ‘digital gold,’ maintaining its status as a store of value, while others embrace Ethereum as ‘digital oil,’ fueling the digital economy.
The coming months will be pivotal in determining whether Bitcoin Ordinals can establish itself in the evolving NFT landscape or revert to its core role as a store of value. Despite its recent decline, Bitcoin Ordinals still holds a position within the NFT sector. CryptoSlam data ranks the Bitcoin network seventh in terms of NFT sales volume over the past 30 days, generating $14.6 million from 21,989 buyers.