According to DappRadar data, over the past three months, the transaction volume and number of sales of Ordinals, Bitcoin-based NFTs, have declined by more than 92% to $35 million and pas 172,956 transactions in July.
May was a record month for Bitcoin NFTs, as the trading volume of the tokens reached $452 million (832,648 transactions).
However, the figures started to decline rapidly in the summer. Thus, in June, the trading volume dropped to $106 million, while in August, the value almost bottomed out, reaching $3 million in the middle of the month.
The company's analysts have noted:
"While fluctuations in sales volume could be attributed to market dynamics, a consistent decline in transaction count may point toward broader issues. It suggests that fewer traders are engaging with Bitcoin Ordinals, which could raise concerns about its longevity and relevance in the NFT space."
DappRadar has added the next months will be critical for the BRC-20 token ecosystem.
According to the researchers, while Ordinals brought novelty to the market, tokens on the Polygon and Ethereum networks have a proven track record and broader adoption.