There has been negative speculation about the health of the Bitcoin Ordinals market since sales volumes have dipped. Developer and self-declared ‘Ordfluencer’ Leonidas NFT took to Twitter to underline that the Ordinals dominate the blockchain transaction volume.
He stated, “Over the past 24 hours, Bitcoin had 530,788 transactions. 450,785 of those transactions were Ordinals related.”
The Majority of Bitcoin Tractions Came From Ordinals
Leonidas claimed that Bitcoin witnessed an astounding number of transactions related to Ordinals. The influencer emphasized that while many pointed out that Ordinals were no longer popular, they continue to make up 84.9% of Bitcoin’s daily activity.
Dune Analytics figures confirm their vitality, with 307,191 inscriptions created on the Bitcoin network on August 21. In the previous 24 hours, this figure was beyond 411,000. This brought the total inscriptions to date to almost 26 million.
Take a look at our Bitcoin Ordinal explainer guide here: Bitcoin NFTs: Everything You Need To Know About Ordinals
Notably, daily Bitcoin transactions remain north of 500,000 at press time. These average over 20,000 transactions per hour based on BitInfoCharts data. Crunching the numbers based on inscriptions, it’s evident that a significant fraction of Bitcoin transactions can be linked to Ordinals.
DappRadar previously pointed out in its report that the Ordinals market is facing challenges. Bitcoin Ordinals’ trade volume and transaction count have reportedly been down by more than 97% since its peak in May 2023. In the golden month, Bitcoin Ordinals recorded a stellar $452 million sales with 832,648 transactions.
But the tide turned in June, with sales dropping by 76.5% to $106 million, according to the report. Transactions decreased by 60.3% near the start of July, continuing the downtrend as sales dropped another 66.9%.
Broader NFT Market Slows Down
The report highlighted that August’s preliminary figures reveal a more drastic contraction. Sales plummeted by 91.4% to just $3 million, while transactions reduced by an astonishing 88.1% at 20,571.
It cannot be denied that the continuous drop in transactions could signal waning enthusiasm or/and confidence in Bitcoin offerings beyond payments.
However, the broader market dynamics could explain some volume fluctuations.
DappRadar signaled that in July, only 4% of the total industry’s unique active wallets were involved in NFT trading.
Despite the slowdown, OKX Wallet recently announced that it’s now the first multi-chain wallet to support Bitcoin Ordinals minting on mobile platforms. It stated,
“With Ordinals minting now accessible both online and on mobile, OKX persists in its unwavering commitment to the Bitcoin ecosystem.”
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