DappRadar has highlighted a significant decline in user engagement with Bitcoin Ordinals nonfungible tokens, noting a remarkable 98% drop in trading volumes since May.
According to a report dated August 17, DappRadar’s data revealed that total sales volume for Bitcoin Ordinals had plummeted from its peak of $452 million in May to approximately $3 million by August 14.
This decline was mirrored in the number of transactions, which also saw a sharp decrease of about 97% to a total of 20,571 within the same time frame.
DappRadar depicted the situation in the Ordinals market as rather bleak. However, the report also highlighted the necessity of additional time to ascertain whether this decline is a “temporary setback” or indicative of a “systemic issue concerning Bitcoin-linked NFTs.”
The report emphasized, “The significant drop in sales volume and transaction count within such a brief timeframe is a cause for concern in the realm of Bitcoin Ordinals. The diminishing sales count underscores the fading excitement or, possibly, the diminishing faith in Bitcoin NFTs.”
This decline follows a highly anticipated second quarter for Bitcoin Ordinals, during which trading volumes and user engagement surged significantly compared to the first quarter.
DappRadar further indicated that a pivotal challenge concerning the longevity of Ordinals lies in the fragmented perspective within the Bitcoin community regarding the suitability of NFTs on the network. This contrast is absent in Ethereum and other blockchain networks.
“Some voices within the community perceive Bitcoin primarily as ‘digital gold,’ asserting that its fundamental purpose should be upheld as a store of value. Conversely, Ethereum is commonly characterized as ‘digital oil,’ symbolizing its contribution to energizing the digital economy,” the report explains, and continues:
Based on data from CryptoSlam, the Bitcoin network currently holds the seventh position in NFT sales volume for the last 30 days, generating $14.6 million from 21,989 buyers.