Bitcoin Ordinal Inscriptions Achieve Record 422,000 Daily Issuances in July, NFT Trading Plunges 50%

By 0xK2 08/1/23 2:40 PM

The world of cryptocurrency witnessed a fascinating contrast in July as Bitcoin Ordinal inscriptions set a new record with over 422,000 daily issuances, while the trading volume for Bitcoin NFTs experienced a sharp decline due to falling prices and a decrease in the number of buyers. The report comes from The Block, a reputable blockchain news outlet, citing data from Dune Analytics.

Bitcoin Ordinals, launched in January, have gained significant attention in the NFT (Non-Fungible Token) space by allowing users to create unique NFTs using the Bitcoin blockchain through a process called ‘inscription.’ Despite the impressive milestone of 422,000 daily issuances on July 30, the trading activity for Bitcoin NFTs dropped by 50% compared to the previous month.

According to data from CryptoSlam, a platform that tracks NFT trading volumes, July’s trading volume for Bitcoin Ordinals is estimated to be approximately $61 million. This marks a substantial decline of nearly 50% from June, when the trading volume reached close to $120 million.

In addition to the decreased trading volume, the average selling price of Bitcoin NFTs also suffered a significant setback. The average price per NFT in July was recorded at around $460, compared to $604 in the previous month. Furthermore, the number of unique buyers decreased to approximately 27,000 during the period, down from over 54,000 buyers in June.

Rebecca Stevens, a Research Analyst at The Block, shed light on possible reasons for the surge in Bitcoin NFT issuance despite the slowdown in trading volume. She pointed to the actions of Luminex, an ordinary launchpad that recently published a revised BRC-20 standard, and its role in reducing associated fees. It’s likely that this move encouraged more users to mint and issue NFTs on the Bitcoin blockchain.

As the NFT market continues to evolve, it’s important to consider the broader implications of these trends. The surge in daily issuances of Bitcoin Ordinals indicates a growing interest in the NFT space, driven in part by the ease and convenience of creating unique digital assets on the Bitcoin blockchain. However, the declining trading volume and average selling price suggest that the market may be experiencing a cooling-off period, which could potentially be a result of fluctuating cryptocurrency prices and the evolving preferences of investors and collectors.

Join us on Telegram