The use of Ordinals is experiencing a significant decline

The adoption of ordinals – which are a kind of NFT on Bitcoin – has experienced a notable decline since September 25, 2023. The number of daily registrations fell from 440 to less than 760 at the beginning of October.

This decline is due to several factors, including the decline in the price of Bitcoin, loss of investor interest, and competition from new NFT projects.

The main factors that justify this decline

If ordinals are facing difficulties today, it is due to several factors. First, the price of Bitcoin has fallen significantly since its peak in November 2021. This drop has likely discouraged some investors from purchasing Bitcoin ordinals, which are recorded on the Bitcoin blockchain.

So, as we can see from the charts on Dune, even though total registrations are increasing, there is a noticeable drop in the number of registrations per day.

Then, the NFT market has become a little awkward for a while. Indeed, according to the investigation report According to DappRadar, there is a “decline in interest” across NFTs with trading volume on Ethereum and Polygon down 22% and 60% respectively. This is a situation that could quickly lead some investors to lose interest in Bitcoin ordinals.

Finally, new NFT projects have appeared on the market. These are projects that offer features and benefits different from those of ordinals. For example, NFTs based on other blockchains, such as Ethereum and Solana, are still more popular and well-known. These NFTs often offer features and benefits that ordinals do not.

The light at the end of the tunnel

Even though the situation seems hopeless, there are some encouraging signs for the future of ordinals. Indeed, the market for BRC20 tokens, which are used to power ordinals, saw a slight increase this week. Moreover, the price of Bitcoin has started to stabilize for a while.

If the price of Bitcoin continues to stabilize and users become more familiar with ordinals, it is possible that adoption of this technology will increase again in the future.

Last word

The decline in adoption of ordinals is a very controversial topic for this sector. If this trend continues, it could have a negative impact on Bitcoin NFTs that many consider useless.

To better stimulate their uptake, developers and investors must work to make this sector more attractive. They can do this by implementing innovative features and benefits, and by further promoting ordinals that appeal more to the public.