- Bitcoin Ordinals has seen a decline in trading volume and sales since May.
- The continued decline in transaction volume and sales has led to concerns about the future of NFTs.
The trading volume and number of sales of the Bitcoin Ordinals digital asset collection have dropped significantly since May, according to a new one report by DappRadar.
Bitcoin [BTC] Ordinals launched in January 2023 and quickly became one of the most popular NFT collections. However, after peaking in May, the hype around the collection has subsided and sales volume has since declined.
Death to NFTs on the Bitcoin Network?
After the launch of Bitcoin Ordinals, the collection’s trading volume and sales rose to $452 million and 832,648, respectively, by the end of May. This represented a 3128% increase from the $14 million in trading volume recorded in April.
Similarly, between April and May, sales of the NFTs that make up the collection increased by more than 1,500%.
However, the trend suddenly shifted in June when the general market decline in NFTs affected Bitcoin Ordinals. According to DappRadar:
“In June, the wind changed, with sales volume plummeting 76.5% to $106 million. At the same time, the number of sales faced a sharp drop of 60.3% to 330,121, indicating a dampened trade fervor.”
The decline continued into July as the collection recorded a further 70% drop in sales volume and a 48% drop in the number of NFT transactions.
As for August:
“Early data from August 2023 shows an even grimmer scenario. Sales have dropped dramatically by 91.4% to just $3 million. Meanwhile, transactions have decreased by a surprising 88.1%, with only 20,571 transactions, underlining an evaporation of trading interests.”
Source: DappRadar
There are still reasons for concern
The fluctuations in Bitcoin Ordinals monthly sales volume reflect declining interest in the general NFT market in recent months. According to NFTGo, since February 20, the total NFT market cap is down 38%. At the time of writing, it stood at $5.6 billion.
According to the data provider, there is also a corresponding decline in daily sales volume. With $47.12 million registered on August 15, this has been steadily down 88% since February 20.
Source: NFTGo
However, DappRadar noted:
“A consistent decline in the number of (Bitcoin Ordinals) transactions may point to 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.