Since May 2023, the trading volume of Bitcoin Ordinals has fallen by more than 97%. Nevertheless, users still generate the majority of activity on the first cryptocurrency’s network, with the total number of Bitcoin NFTs surpassing 25.5 million.
According to a report by DappRadar, the trading volume of Bitcoin Ordinals tokens has decreased significantly over the past three months. The number of unique active wallets (UAW) trading Bitcoin NFTs has also decreased dramatically during the period studied.
Thus, the decline in trading volume of BRC-20 tokens began in June, when only 330,121 transactions were conducted during the month, while the same figure for May was 832,648. Bitcoin Ordinals sales fell from $452 million in May to $106 million in June. In July, Ordinals trader activity dropped even further, to 172,956 transactions and $35 million. Meanwhile, analytics of the available data for August signal that the downward momentum continues. As of August 14, there were only 20,571 Bitcoin Ordinals transactions worth $3 million.
DappRadar analysts partially attribute this trend to the downward momentum in the NFT market this summer. The activity of traders trading NFTs on Ethereum and Polygon networks has also significantly decreased over the past three months, falling by 22% and 60%, respectively.
It’s worth noting that despite the decline in trading volume, users of the Ordinals protocol still generate the majority of activity on the Bitcoin network. For example, on-chain analytics shows that in the last 24 hours, 530,788 transactions were made on the Bitcoin network, 450,785 of which were related to Ordinals NFT.
This trend clearly indicates that interest in BRC-20 standard tokens isn’t waning. On the contrary. According to Dune Analytics, the number of Bitcoin NFTs created in August exceeded the mark of 25.5 million.
The development of the Ordinals protocol was the main reason for the increase in demand for BTC this year, expanding the possibilities of using the first cryptocurrency for non-financial transactions.
