Bitcoin Ordinals NFTs’ Trading Volume Plunged 98% Since May

There has been a significant decrease in user activity for Bitcoin Ordinals NFTs. Trading volumes have plummeted by 98% since May, according to a new report by DappRadar.

The data showed that Bitcoin’s Ordinals sales volume has reduced from $452 million in May to only $3 million as of August 14. Additionally, the number of transactions decreased by 97% to 20,571 during this period.

According to DappRadar, the current situation in the Ordinals market appears concerning, but whether it is a temporary setback or an ongoing issue with Bitcoin-based NFTs is unclear.

The report noted that the recent sharp decline in both sales volume and count is worrying for the market, indicating a decrease in enthusiasm or confidence in Bitcoin NFTs. Further analysis is needed to determine the cause and potential solutions for this decline.

“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,” the report added.

The decrease in Bitcoin Ordinals’ performance occurred following a highly anticipated second quarter that saw a significant increase in trading volumes and user activity compared to the preceding quarter in 2023.

DappRadar mentioned that one of the significant concerns regarding the sustainability of Ordinals is the divide within the Bitcoin community on whether or not NFTs should be allowed on the network. This issue is not present in Ethereum and other blockchains.

In the last 30 days, NFT sales volume data from CryptoSlam shows that the Bitcoin network is placed seventh, generating $14.6 million from 21,989 buyers.