Bitcoin Ordinals NFT trading volume tanks 98% since May: DappRadar

The decrease comes after a hype-filled second quarter for Bitcoin Ordinals, which saw trading volumes and user activity escalate compared to Q1. Related: Bitcoin Ordinals team introduces not-for-profit to grow protocol advancement”There are voices within the community that view Bitcoin mainly as digital gold, suggesting that its main function must remain as a shop of worth.”According to CryptoSlam data, the Bitcoin network is presently ranked seventh in terms of NFT sales volume over the past 30 days with $14.6 million produced from 21,989 buyers.

DappRadar has pointed to an “alarming plunge” in Bitcoin Ordinals nonfungible token user activity, with trading volumes tanking around a massive 98% considering that May. In an Aug. 17 report, DappRadar highlighted its data revealing that the total Bitcoin Ordinals sales volume had reduced from peak levels of $452 million in May to roughly $3 million since Aug. 14. In line with that drop, the variety of deals likewise declined by around 97% to 20,571 within that very same time-frame. Ordinals trading volume and sales count. Source: DappRadar.DappRadar described it as a grim circumstance for the Ordinals market, however did also stress that more time is required to identify whether this is a “short-lived obstacle” or something that represents a “systemic issue of Bitcoin-based NFTs.” “This high decline in both sales volume and count within such a brief duration is worrying for Bitcoin Ordinals. The decreasing sales count underscores the subsiding enthusiasm or possibly confidence in Bitcoin NFTs,” the report kept in mind, including that:” While changes in sales volume might be attributed to market characteristics, a constant decline in deal count may point towards wider issues. It recommends that fewer traders are engaging with Bitcoin Ordinals, which might raise concerns about its longevity and relevance in the NFT space.” Q2 saw a substantial decline in the #NFT market, both in regards to trading volume and active wallets. Among the greatest victims was #Bitcoin Ordinals, with sales down 97% since May. Is this the end of Bitcoin NFTs? DappRadar exploreshttps:// t.co/ v0ouv9uwVJ– DappRadar (@DappRadar) August 17, 2023

In an Aug. 17 report, DappRadar highlighted its data showing that the overall Bitcoin Ordinals sales volume had actually decreased from peak levels of $452 million in May to approximately $3 million as of Aug. 14. “This high decline in both sales volume and count within such a short duration is disconcerting for Bitcoin Ordinals. Related: Bitcoin Ordinals team releases nonprofit to grow protocol advancement”There are voices within the community that see Bitcoin mainly as digital gold, recommending that its primary function must stay as a shop of value.

Other Questions People Ask

What caused the Bitcoin Ordinals NFT trading volume to tank 98% since May?

The significant drop in Bitcoin Ordinals NFT trading volume, which fell from $452 million in May to approximately $3 million by mid-August, can be attributed to a decline in user activity and enthusiasm within the community. After a hype-filled second quarter, the market appears to be experiencing a cooling-off period, leading to a 97% decrease in the number of transactions. This sharp decline raises concerns about the long-term viability of Bitcoin-based NFTs.

How does the current trading volume of Bitcoin Ordinals compare to previous months?

As of mid-August, Bitcoin Ordinals' trading volume has plummeted to around $3 million, a stark contrast to the peak of $452 million recorded in May. This drastic reduction indicates a significant shift in market dynamics, with fewer traders engaging with Bitcoin NFTs. The data suggests that the excitement surrounding Bitcoin Ordinals has waned considerably since its earlier highs.

What implications does the drop in Bitcoin Ordinals NFT trading volume have for the future of Bitcoin NFTs?

The alarming 98% drop in trading volume for Bitcoin Ordinals raises critical questions about its future in the NFT space. DappRadar's report suggests that this decline may not just be a temporary setback but could indicate systemic issues affecting Bitcoin-based NFTs. If fewer traders continue to participate, it may jeopardize the relevance and longevity of Bitcoin Ordinals in the broader NFT market.

Are there any signs that the decline in Bitcoin Ordinals NFT trading volume could be temporary?

While DappRadar has characterized the situation as grim, they also emphasize that more time is needed to determine whether this decline is a short-lived challenge or indicative of deeper issues. The report highlights that fluctuations in sales volume can be influenced by market dynamics, but a consistent drop in transaction counts could signal waning interest. Observing future trends will be crucial to understanding the potential recovery of Bitcoin Ordinals.

What factors contributed to the hype around Bitcoin Ordinals before the trading volume decline?

The hype surrounding Bitcoin Ordinals in the second quarter was fueled by increased user activity and a surge in trading volumes compared to the first quarter. Enthusiasm within the community was high, with many viewing Bitcoin as more than just digital gold, leading to a spike in NFT transactions. However, this excitement has not sustained itself, resulting in a dramatic decrease in both sales volume and transaction counts since May.