In a DappRadar analysis released on August 17, there seemed to be a “alarming plunge” in Bitcoin Ordinals nonfungible token (NFT) user engagement.
Disappointing Picture for the Bitcoin Ordinals Market
DappRadar called this to be a disappointing picture concerning the Ordinals market, but added that further analysis is needed to establish if it is a “temporary setback” or a “systemic problem of Bitcoin-based NFTs.”
98% Drop in Trading Volumes
Since May, trading volumes of Bitcoin Ordinals nonfungible token have dropped by over 98%. In keeping the overall decrease, the total amount of activities fell by approximately 97% to 20,571 for the same time period. According to DappRadar’s data, overall Bitcoin Ordinals sales volume has dropped from a high of $452 million in May to below $3 million as of Aug. 14.
The report states: “While fluctuations in sales volume could be attributed to market dynamics, a consistent decline in transaction count may point toward broader issues. It suggests that fewer traders are engaging with Bitcoin Ordinals, which could raise concerns about its longevity and relevance in the NFT space.”
NFTs on Bitcoin
According to DappRadar, a fundamental issue surrounding the long-term viability of Ordinals is that the Bitcoin audience has different opinions on whether NFTs should be allowed on the network or otherwise, which isn’t a problem for Ethereum along with other blockchains.
The report adds:“The coming months will be crucial in determining whether Bitcoin finds a foothold in the ever-evolving NFT landscape or reverts to its primary role as a store of value.”
MicroStrategy is Looking into Ordinals
The news has emerged after a dramatic spike in the trading volumes. Ordinals, Bitcoin’s native Non-Fungible Tokens (NFTs), were in the headlines in the NFT market, having the potential to replace Ethereum as the market leader, according to statistics from Crypto Slam, which showed a rise in the popularity of Ordinals.
In addition, MicroStrategy co-founder and executive director Michael Saylor stated in May that the software company is looking into Ordinals and analyzing its potential for application development.