Crypto News– Since May 2023, the monthly trading volume of tokens built on the Bitcoin Ordinals protocol has experienced a staggering decline of over 97%.
Bitcoin Ordinals Trading Volume Takes a Nosedive, Plummeting Over 97% Since May
Ordinals introduce a distinctive concept by enabling the creation of both fungible (BRC-20) and non-fungible tokens (NFTs) on the Bitcoin blockchain. These assets gained immense popularity during the second quarter of the year. Trading volume reached its pinnacle in May, reaching $452 million, but has since witnessed a rapid and steep descent, as indicated in a report by DappRadar.
In June, the trading volume for Ordinals plummeted by 76.5%, reaching $106 million, according to the report. July and August marked a complete reversal of the fervent trading activity seen in May. July’s trading volume experienced a sequential decline of 66.9%, settling at $35 million. Present data, collected in mid-August, reveals a mere volume of $3 million, marking a precipitous fall of over 97% from the all-time high in May. Trading volume is often seen as an indicator of market strength, and this significant decrease could be interpreted as a signal of waning market interest in Ordinals.
“The decline poses significant questions regarding the future of NFTs on the Bitcoin blockchain,” the report underscored. According to DappRadar, during the peak of market interest in May, the Ordinals market saw participation from 79,261 unique active wallets (UAW). However, this figure has dwindled to a mere 6,708 in August.
DappRadar defines its UAW data as a metric that quantifies the number of distinct wallet addresses interacting with the Ordinals ecosystem.
Emerging earlier this year, the Ordinals protocol initially gained prominence by enabling token and NFT creation on the Bitcoin network, sparking heightened transaction and fee activity on the platform.