Binance Phases Out Support for Bitcoin NFTs from Marketplace

Binance, the leading cryptocurrency exchange by market capitalization, has announced the cessation of support for Bitcoin non-fungible tokens (NFTs) on its marketplace, just months after their introduction.

In a blog post published on April 4, Binance detailed its efforts “to streamline product offerings” on the Binance NFT marketplace. As part of this initiative, the exchange will halt support for trades and deposits of Bitcoin Ordinals, also known as Bitcoin NFTs, effective April 18.

As reported earlier by TheCoinRise, a DappRadar analysis released on August 17 last year showed that there seemed to be an “alarming plunge” in Bitcoin Ordinals NFT user engagement.

Withdrawing Funds from Binance NFT Marketplace

Users have been advised to withdraw their Bitcoin NFTs from the Binance NFT Marketplace via the Bitcoin network before May 18, 2024, to ensure uninterrupted access to their assets.

Furthermore, the post outlined that airdrops, benefits, and utilities associated with Bitcoin NFTs will cease after April 10, 2024, marking the conclusion of support for these assets on the platform.

What are Bitcoin Ordinals?

Bitcoin Ordinals enable the embedding of digital content such as art, text, or video directly onto the Bitcoin blockchain. 

While data embedding has been a feature of the Bitcoin protocol for some time, the popularity of Ordinals surged with their introduction in late 2022. Developed by Casey Rodarmor, this protocol enables the direct embedding of unique digital artworks into Bitcoin transactions, akin to Ethereum’s NFTs.

While initially projected to overtake Ethereum NFTs, Bitcoin Ordinals do not seem to have that much demand for now.

Decision Taken by Binance Surprises Community

The decision to phase out support for Bitcoin NFTs on Binance’s marketplace has taken many in the community by surprise. Binance had only integrated support for Bitcoin NFTs in May 2023, extending its ecosystem to the Bitcoin network and promising collectors greater opportunities within its platform.

The influx of NFT transactions has occasionally congested the Bitcoin network, resulting in elevated fees and slower processing times as more transactions are validated on-chain. According to data from Dune Analytics, the network has seen over 64 million inscriptions to date, generating over $423 million in transaction fees.

As Binance shifts its focus away from Bitcoin NFTs, users are urged to take prompt action to safeguard their assets and ensure continued access to associated benefits and utilities. 

The decision underscores the evolving landscape of NFTs within the cryptocurrency market and it seems Binance is planning some big changes after bringing a new Board of Directors.