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.
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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 has seen a drastic reduction in both sales volume and transaction counts, indicating waning interest. This situation raises concerns about the sustainability and relevance of Bitcoin NFTs in the broader NFT landscape.
How does the current trading volume of Bitcoin Ordinals compare to previous months?
As of mid-August, Bitcoin Ordinals NFT trading volume has plummeted to around $3 million, a stark contrast to the peak of $452 million recorded in May. This represents a staggering 98% decrease, highlighting a significant shift in market dynamics. The decline in trading volume is accompanied by a 97% drop in transaction counts, suggesting that fewer traders are engaging with Bitcoin Ordinals NFTs.
What implications does the 98% drop in Bitcoin Ordinals NFT trading volume have for the future of Bitcoin NFTs?
The alarming 98% drop in trading volume for Bitcoin Ordinals NFTs raises critical questions about their future viability. DappRadar's report suggests that this decline may not just be a temporary setback but could indicate systemic issues within the Bitcoin-based NFT market. As fewer traders participate, it may lead to diminished confidence and interest, potentially jeopardizing the long-term relevance of Bitcoin NFTs.
Is the decline in Bitcoin Ordinals NFT trading volume indicative of broader market trends?
The decline in Bitcoin Ordinals NFT trading volume is reflective of a larger downturn in the NFT market during Q2, which has seen reduced trading volumes and active wallets across various platforms. This trend suggests that the enthusiasm for NFTs may be waning overall, with Bitcoin Ordinals being one of the most affected segments. Observers are closely monitoring whether this trend represents a temporary challenge or a more profound issue affecting the NFT ecosystem.
What factors contributed to the hype around Bitcoin Ordinals NFTs before the trading volume decline?
The hype surrounding Bitcoin Ordinals NFTs in the second quarter was fueled by increased user activity and significant sales volumes, which attracted attention from both investors and collectors. The introduction of innovative features and community engagement initiatives likely contributed to this initial surge. However, as interest waned and trading volumes plummeted by 98%, it raises questions about whether this excitement was sustainable or merely a fleeting trend.