Bitcoin Ordinals trading has seen a significant decline, sparking a debate over conflicting reports and the future of these NFTs.
Bitcoin Ordinals, a variant of Bitcoin’s non-fungible tokens (NFTs), experienced a sharp drop in sales volumes from May to August. A heated debate erupted following this significant decline, with conflicting reports regarding the exact numbers. Here, we will explore the statistics, the controversy surrounding these numbers, and insights from various industry experts.
What Are Bitcoin Ordinals and Why They’re Important?
Bitcoin Ordinals are unique digital artifacts linked to individual satoshis, the smallest part of a Bitcoin (BTC). These NFTs represent a significant part of the wider NFT space, witnessing a huge surge in interest earlier in the year.
However, DappRadar’s report signaled a declining interest in the NFT space, with a 97% drop in Bitcoin Ordinals sales volumes from May to August. Unique active wallets on Ethereum and Polygon also witnessed a decline of 22% and 60%, respectively. The figures concerning Ordinals were even more pronounced.
Controversy Over DappRadar’s Report
Many questioned the accuracy of DappRadar’s report. Bitcoin entrepreneur Trevor Owens dubbed the report as “highly inaccurate,” accusing it of containing “clear indexing errors in their tech.” Other on-chain data providers, such as Crypto Slam and Dune Analytics, presented differing figures.
Crypto Slam and Dune Analytics both pointed to a May to July drop of 67% and 69% in sales volume, a significant difference from DappRadar’s 92% figure. Moreover, many found fault in comparing incomplete data from August with full months, a point highlighted by multiple Ordinals fans.
Different Perspectives from Data Providers
The discrepancy between the reports of DappRadar, Crypto Slam, and Dune Analytics led to further scrutiny. Crypto Slam recorded May sales volumes at $195 million, compared to DappRadar’s $452 million. July’s figures also differed, with the percentage drops lining up more closely with Crypto Slam.
DappRadar’s Senior Communications Manager, Robert Hoogendoorn, defended their methodology, emphasizing their focus on accuracy. DappRadar’s official statement insisted that their data was correct and acknowledged potential discrepancies due to the nature of transactions involved.
The Real Picture of Ordinals Trading
Despite conflicting reports, there is consensus that the reality for Ordinals is grim. However, the disagreement over the numbers, such as the comparison of full months to August’s fifteen days, adds to the confusion.
Some experts like Jake Gallen of Emblem acknowledged that while volume is down, there are still tens of thousands of transactions per day. Isabel Foxen Duke, a former representative for the Ordinals protocol, admitted the market is down but was confident that Ordinals are not disappearing.