98% Drop in NFT Trading Volume on DappRadar – What Does it Mean for Crypto?

Bitcoin Ordinals NFT User Activity Plunged 98% Since May

According to DappRadar’s report, Bitcoin Ordinals NFT user activity has experienced an “alarming plunge” since May, with trading volumes tanking around a whopping 98%. On Aug. 14, the total sales volume had decreased from $452 million to $3 million.

Additionally, the number of transactions had also declined by 97% to 20,571 since May. This is a grim scenario for the Ordinals market, however, more time is needed to identify whether this is a “temporary setback” or a “systemic problem of Bitcoin-based NFTs”.

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Bitcoin Ordinals Struggle to Maintain Momentum

A recent report from DappRadar has revealed a steep decline in both sales volume and count for Bitcoin Ordinals, a finding that has alarmed many in the crypto community. The diminishing sales count has been attributed to waning enthusiasm or perhaps confidence in Bitcoin NFTs.

This sharp decline follows a hype-filled second quarter for Bitcoin Ordinals, which saw trading volumes and user activity surge compared to the first quarter of 2023. DappRadar has suggested that a key issue surrounding the sustainability of Ordinals is the divided outlook of the Bitcoin community on whether NFTs should be on the network or not, unlike Ethereum and other blockchains.

The report states: “There are voices within the community that view Bitcoin primarily as ‘digital gold,’ suggesting that its primary function should remain as a store of value. On the other hand, Ethereum is often referred to as ‘digital oil,’ indicating its role in fueling the digital economy.”

The report highlights the need for the crypto community, particularly those involved with Bitcoin Ordinals, to come together and agree on the role of NFTs on the network if the industry is to remain sustainable and continue to grow in the future.

CryptoSlam data reveals that over the past 30 days, Bitcoin network is ranked seventh in terms of NFT sales volume, with $14.6 million generated from 21,989 buyers.

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