Bitcoin Ordinals Token Trading Plunges: NFTs on Shaky Ground
The trading activity of tokens built upon the Bitcoin Ordinals protocol has experienced a significant plummet of over 97% since the onset of May 2023.
The Ordinals framework presents a distinct opportunity for the issuance of fungible (BRC-20) and NFTs on the Bitcoin blockchain. These types of assets gained substantial popularity in the second quarter of this calendar year. Notably, the trading volume reached its pinnacle in May, reaching $452 million; however, subsequent to this peak, it has observed a rapid decline, as indicated in a report by DappRadar.
In June, the trading volume for Ordinals saw a considerable decline of 76.5%, settling at $106 million, as outlined in the report. The months of July and August bore a complete reversal of the trading fervor seen in May. The trading volume for July contracted by 66.9%, amounting to $35 million. As per the latest data available from mid-August, the trading volume has dwindled to a mere $3 million, showcasing a staggering decrease of over 97% from the all-time high in May.
A key metric reflecting the robustness of the market is its trading volume. This notable reduction in trading volume could be an indicator of waning interest in Ordinals within the market.
The report notably mentions, “The decline poses significant inquiries concerning the future prospects of NFTs within the Bitcoin blockchain ecosystem.”
READ MORE: Crypto Market Slump: HODLers Defy Selling Trend, Glassnode Reports
Diminishing UAW Engagement As highlighted in the DappRadar report, during the peak of market enthusiasm in May, 79,261 unique active wallets (UAW) were participating in the Ordinals market.
However, this number has dwindled significantly to only 6,708 by the time August rolled around. DappRadar characterizes their UAW data as a metric that gauges the count of distinct wallet addresses engaging with Ordinals.
The Ordinals protocol rose to prominence earlier this year, allowing for the creation of tokens and NFTs on the Bitcoin network, leading to a surge in transactions and associated fees on the network.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
