DappRadar noted that Bitcoin Ordinals non-fungible token user activity has seen a “stunning plunge,” with transaction volume plummeting by around 98% since May.

on August 17 ReportDappRadar highlighted its data showing that as of Aug. 14, total Bitcoin Ordinals sales had fallen from a peak of $452 million in May to around $3 million.

In line with this decline, the number of deals also fell by around 97% to 20,571 during the same time period.

Ordinal volume and sales. Source: DappRadar.

DappRadar described it as a dire situation for the Ordinals market, but also emphasized that more time is needed to determine whether this is a “temporary setback” or represents a “systemic problem with Bitcoin-based NFTs.”

“The sharp decline in sales and volume in such a short period of time is shocking for a Bitcoin ordinal. The reduction in the number of sales highlights waning enthusiasm or confidence in Bitcoin NFTs,” the report states, adding :

“While fluctuations in sales volume may be attributed to market dynamics, a continued decline in the number of transactions may indicate a broader problem. This suggests that fewer traders are participating in Bitcoin ordinals, which may raise questions about the longevity and NFT space. Correlation concerns.”

The transaction volume and user activity of Bitcoin Ordinal jumped in the second quarter compared with the first quarter, and Bitcoin Ordinal saw a decline in the second quarter.

DappRadar went on to point out that a key issue surrounding the sustainability of Ordinals is that the Bitcoin community has mixed views on whether NFTs should appear on the network, which is not an issue for Ethereum and other blockchains.

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“There are some voices in the community that see Bitcoin primarily as ‘digital gold’, suggesting that its primary function should still be a store of value. role,” the report read, adding:

“The next few months will be critical in determining whether Bitcoin finds a foothold in the evolving NFT landscape or resumes its primary role as a store of value.”

According to CryptoSlam data, the Bitcoin network currently ranks seventh in terms of NFT sales over the past 30 days, with 21,989 buyers generating $14.6 million in sales.

Top 10 blockchains by 30-day NFT sales. Source: CryptoSlam.

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