Bitcoin’s market for non-fungible tokens is growing, but most of this growth is due to the recent interest in dealing memecoins on the blockchain.
According to data from CryptoSlam, the monthly trade volume of nonfungible tokens (NFTs) and memecoins on Bitcoin was higher than Solana’s.
Bitcoin ordinals trading volume is currently second, behind Ethereum, which did $393 million in NFT volume, more than twice as much as Bitcoin ordinals on $27,162 Bitcoin in 30 days starting April 23. During this time, Bitcoin started to pull away from famous blockchains like Polygon, ImmutableX, BNB Chain, and Solana.
According to a Dune dashboard made by Domo, who created the BRC-20 token standard, most ordinals trades on Bitcoin involved BRC-20 tokens.
The BRC-20 token standard is an experimental standard for fungible tokens built with ordinals. It has been a source of excitement for memecoin, which is a speculative cryptocurrency whose price movement is driven by the actions of some passionate communities.
As interest in BRC-20 memecoins grew in the first half of May, its overall market capitalization passed $1 billion. The market size of BRC-20 tokens is $447 million right now.
Popular BRC-20 tokens like ORDI, PEPE, and MEME don’t do anything useful and were mostly made for testing reasons. For example, Domo, a Twitter user, made ORDI to show off the BRC-20 features that Ordinals offered.
Most of the BRC-20 volume seems to be caused by traders who want to make money off of the new trend. But as gains slow down, BRC-20 token trading is expected to slow down as well.
Bitcoin NFT trade is on the rise.
On the market, BRC-20 coins are being replaced by media-based ordinals, also known as Bitcoin NFTs. UniSat, which mostly trades in BRC-20 tokens, is starting to lose business to Magic Eden, which is a famous Bitcoin NFT marketplace.
Percentage share of volume by marketplace. Source: Dune
Popular collections on Ethereum like Bored Ape Yacht Club (BAYC), which did just over $40 million in trading volume from April 23 to May 23, did about one-fourth as much business as popular collections like Bitcoin Frogs.
NFT traders will try to make Bitcoin NFTs as successful as Ethereum NFTs by putting together sets of ordinals holders into closed groups.
So far, the Bitcoin NFT ecosystem seems to be a long way behind Ethereum, which can support decentralized autonomous organizations and has other benefits like integration with the $27.5 billion strong decentralized finance ecosystem.
For example, BAYC and Azuki both have metaverse projects built around them. These projects give NFT holders special benefits that other people can’t get. On the other hand, CryptoPunks and Milady Maker are famous because they are hard to get and people like to be the first to get them.
It remains to be seen how good Bitcoin NFT collections are at building loyal communities like CryptoPunks, Milady Maker, Azuki, or BAYC. Even though the trade volume of NFTs and memecoins on Bitcoin reached the second spot in May, the NFT collections have yet to be useful or build a loyal community of holders.