Bitcoin Ordinals’ 97% Crash: Is the Hype Over?
• Bitcoin Ordinals’ sales volume has plummeted 97% since its peak in May 2023.
• Transactions have also dropped 88.1% from 832,648 three months ago to 20,571 in August.
• The decline in sales volume and transactions signals waning interest in Bitcoin NFTs.
Bitcoin Ordinals’ Sales Volume Plummets
The fervor that surrounded Bitcoin Ordinals seems to have waned with sales volume dropping more than 97% from its all-time high in May 2023 according to a report by DappRadar. Data for August so far shows a 91.4% drop in sales to $3 million and transactions plummeting to 88.1%.
Decline Since June
After an impressive performance in May, Bitcoin Ordinals’ sales volume began to nosedive in June, falling 76.5% to $100 million and further plunging 66.9% to $35 million the following month. This sharp decline over 3 months signals waning interest in Bitcoin NFTs amongst investors and users alike.
General NFT Market Decline
While there has been a downward trend in the general non-fungible token (NFT) market, Bitcoin Ordinals seem to be the worst hit compared to other blockchains like Ethereum or Binance Smart Chain (BSC). Some believe that the earlier hype was a major cause of its crash, arguing that Bitcoin is better off maintaining its primary function as a store of value rather than attempting to compete with other blockchains for users’ attention.
The drop in sales volume and transactions of Bitcoin Ordinals signifies waning interest amongst crypto investors, who may be seeking out alternative avenues for investment such as DeFi projects or yield farming opportunities instead of purchasing NFTs on the blockchain.
Though it remains unclear whether or not this decline will signal an end for popular NFT projects like Bitcoin Ordinals, it appears that the earlier enthusiasm surrounding them has died down significantly since their peak performance earlier this year