As sales volume plummets, is it time to bid Bitcoin Ordinals adieu?
- Bitcoin Ordinals has seen a drop in trading volume and sales count since May.
- The persistent decrease in transaction volume and sales count has raised concerns about the future of NFTs.
Bitcoin [BTC] Ordinals were launched in January 2023 and quickly became one of the most popular NFT collections. However, after peaking in May, the hype around the collection has died down, and sales volume has since declined.
Death to NFTs on the Bitcoin Network?
Following the launch of Bitcoin Ordinals, the collection’s trading volume and sales count climbed to highs of $452 million and 832,648, respectively, by the end of May. This represented a 3128% jump from the $14 million recorded in trading volume in April.
Likewise, between April and May, the sales count of the NFTs that make up the collection rallied by over 1,500%.
However, the trend suddenly shifted in June, as the general market decline in NFTs impacted Bitcoin Ordinals. According to DappRadar:
“June saw a shift in the winds, with the sales volume plunging by 76.5% to $106 million. Concurrently, the sales count faced a steep decrease of 60.3%, dropping to 330,121, signifying a dampened trading fervor.”
The decline continued in July as the collection recorded a further 70% drop in sales volume and a 48% decline in NFTs transactions count.
As for August:
“August 2023’s early data depicts an even grimmer scenario. Sales have contracted dramatically by 91.4% to a mere $3 million. Meanwhile, transactions have dwindled by a startling 88.1%, with only 20,571 transactions, underscoring an evaporation of trading interest.”
There are still reasons for concerns
The fluctuations in Bitcoin Ordinals’ monthly sales volume mirror the waning interest in the general NFT market in the past few months. According to NFTGo, since 20 February, total NFT market capitalization has dropped by 38%. At press time, it stood at $5.6 billion.
According to the data provider, there has also been a corresponding decline in daily sales volume. With $47.12 million recorded on 15 August, this has decreased steadily by 88% since 20 February.
However, DappRadar noted:
“A consistent decline in (Bitcoin Ordinals) 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.”