May 29, 2024
Bitcoin Ordinals Sales Drop 61% in January
Bitcoin News

Bitcoin Ordinals Sales Drop 61% in January

Bitcoin Ordinals, the first NFTs on the Bitcoin network, faced a substantial decline in monthly sales, with figures dropping by 61% to $335 million in January compared to the previous month’s record-high sales of $868 million, as reported by NFT data aggregator CryptoSlam. The decrease in sales was notable despite the growing interest in Bitcoin ETFs and the anticipation surrounding the upcoming halving event. Key factors contributing to this decline included the oversaturation of the NFT market and heightened competition from collections on other blockchains.

Anndy Lian, an intergovernmental blockchain expert, offered insights into the situation, highlighting that the influx of new projects and artists into the NFT space has given buyers an abundance of options. This became particularly apparent as other blockchains, such as Solana, gained momentum, diverting attention from Bitcoin Ordinals. While Ethereum NFT sales also experienced a 2.2% decline to $355 million, NFT sales on Avalanche witnessed an 89% increase to $46.7 million in January, up from $24.7 million in December.

A notable player in the Avalanche network’s sales volume was Dokyo NFTs, which generated $31.4 million in January, representing a significant portion of the blockchain’s monthly sales at 67%. The Dokyo collection experienced a surge in sales starting in November, achieving the status of the most traded NFT collection across all blockchains on Nov. 24.

Despite the decline in sales, the total number of Ordinals inscriptions on the Bitcoin network continues to grow and has surpassed 59 million, according to Dune data. Additionally, the average Ordinals sale price observed a 25% decrease to $1,340 in January, compared to $1,793 in December.

“The launch of Ordinals has been controversial in the Bitcoin community because some believe the activity to be similar to spam email. This could have affected the reputation and legitimacy of Ordinals among some Bitcoin enthusiasts.”

Despite the sales dip, major players in the crypto industry, including Binance, have expressed continued interest in Ordinals. Binance, the world’s largest crypto exchange, launched its Ordinals marketplace on Feb. 1.

“The reduced supply of Bitcoin could make each satoshi more valuable and scarce, thus increasing the appeal of Ordinals as unique and collectible assets. Additionally, the halving could drive up the transaction fees on the Bitcoin network, which could incentivize miners to process Ordinals transactions and secure the network.”

Looking ahead, optimism remains, with expectations that the upcoming Bitcoin halving event will rekindle interest in Ordinals, potentially offering more use cases beyond its existing role as a store-of-value asset. 21Shares, the world’s largest crypto exchange-traded product (ETF) provider, noted in its 11th edition of the “State of Crypto” report that innovations like Ordinals and BRC-20 tokens could drive increased demand for Bitcoin and expand its use cases on the network.

Image By WangXiNa

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