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Bitcoin Ordinals profitability falls in July, but total inscriptions pile on

Bitcoin Ordinals profitability falls in July, but total inscriptions pile on

Revenue for NFT services on the Bitcoin network, or the aggregate value of marketplace fees and creator royalties, declined over July even as total Ordinals inscriptions crossed 20 million.

A screenshot of Ordinals Punks, from Bitcoin Ordinals Market
Image: Ordinals.Market

The profitability of Ordinals inscriptions, an iteration of non-fungible tokens (NFTs) on the Bitcoin network, declined throughout July, Forkast Labs data show.

Monthly NFT services revenue, or the sum of marketplace fees and creator royalties on the Bitcoin network, fell to US$1.22 million in July from US$3.13 million in June, suggesting lower profitability for Ordinals sales on the Bitcoin network.

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Ordinals is an iteration of NFTs on Bitcoin, the world’s first and largest blockchain network by market capitalization. Bitcoin had a market capitalization of US$562 billion as of Tuesday, dominating 48.2% of the total cryptocurrency market.

Despite lower profitability, Ordinals broke a daily inscriptions record on July 30 with 422,164, after reaching 20 million total inscriptions on July 28, showing the market’s continued support and interest in Bitcoin-native NFTs, according to data from Dune Analytics. The network exceeded 21 million total inscriptions on Tuesday.

Kadan Stadelmann, chief technical officer of blockchain infrastructure firm Komodo, said that the oversaturation of Ordinals is among the main factors contributing to the declining profitability of Bitcoin NFTs.

“With an influx of new projects and artists entering the space, buyers now face a plethora of options, diluting the value and appeal of individual pieces,” Stadelmann told Forkast.

Tom Tirman, the chief executive officer of NFT rental platform IQ Protocol, suggested that the persistent creation of Ordinals could be a strategic move by investors who — having missed out on prior opportunities — are aiming to position themselves advantageously for the anticipated future expansions of Bitcoin NFTs.

“As we often see in other vital innovations recorded in the industry in the past, Ordinals are bound to regain their momentum after a remarkable use case is tagged with them,” he said.

Profits from secondary market sales have also been declining. The average sale price for Ordinals fell to US$214.03 in July from US$900 in June and US$1,178 in May, according to CryptoSlam data. At its peak in March, Ordinals traded at an average value of US$9,357.

According to Yehudah Petscher, NFT strategist at Forkast Labs, the weaker Ordinals price reflects lower NFT sales volume, as declining interest from buyers pushes sellers to lower prices.

“There’s too much potential on the crypto side of things for traders to want to trade NFTs or Ordinals right now, and there’s also a bit of a liquidity issue. Simply put, traders are out of money. Bitcoin and crypto in general running will fix both of these issues,” said Petscher.

Not just Bitcoin

Although key performance indicators for Ordinals tumbled in July, the Bitcoin network maintained its position as the month’s second most active blockchain in the world for NFTs ranked by sales volume with over US$64.9 million, trailing Ethereum’s US$273.9 million, CryptoSlam data shows.

“The decline in total revenue for NFT services on the Bitcoin network after May does not necessarily signify a lack of interest in Ordinal inscriptions specifically,” Anndy Lian, author of NFT: From Zero to Hero, told Forkast. “Instead, it points to a broader trend in the NFT market as a whole. The decrease in revenue is likely indicative of a general downturn in the NFT market, affecting all types of NFT services and not just Ordinal inscriptions.”

David Atterman, the chief executive officer of crypto-based engagement platform Most.Fan, agreed with Liann, attributing the falling profitability of Ordinals to the poor performance of the overall NFT market.

“Projects that do not carry utility for new users and that do not focus on mass adoption, quickly lose their significance and are unlikely to recover at the next bull run,” said Atterman.

According to Petscher, the next NFT bull run will follow the cryptocurrency market.

“We also need to see some type of innovation happen in NFTs to bring back traders who have realized that currently, there’s not much substance that’s worth investing in,” he said.

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Standard Chartered, a British multinational bank, said in a July research report that Bitcoin prices will top US$120,000 in 2024, fueled by Bitcoin’s halving event set to occur in April 2024. The halving will reduce Bitcoin’s current supply inflow of 6.25 BTC every 10 minutes to 3.125 BTC. Each halving cycle to date has resulted in a new price record for Bitcoin.

Source: https://forkast.news/bitcoin-ordinals-profitability-inscriptions/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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NFT market slumped by 25% between June and July

NFT market slumped by 25% between June and July

Along with the general crypto market, NFT sales have taken a massive hit in the face of the ongoing crypto winter.

According to data from NFT aggregation site CryptoSlam, July’s secondary NFT market sales fell to $650 million, a 25% drop from June figures. This is the second month in a row that NFT sales have been below $1 billion.

Anndy Lian, blockchain author and entrepreneur and founding member of NFT creator studio Influxo explained that “the current [crypto] market right now is in a bear market […] so [NFT] sales actually reflect very much on how the market is reacting.”

Meanwhile, NFT relations strategist for CryptoSlam, Yehudah Petscher said he thinks the market was yet to find the bottom.

 

I don’t know if we’ll find the bottom this year […] I believe this bear market we’re in could extend for multiple years.

However, Petscher is optimistic about the number of unique buyers currently in the market. The number of buyers fell just 7% month-on-month in July to 532,000, a higher figure than that of July last year. He said that while total sales in U.S. dollars are down, the number of transactions makes for a slightly more optimistic outlook.

 

NFTs are in a rough place right now, but I still think in a very healthy place as far as growth [or] as far as transactions [are concerned].

The upcoming “Merge” for Ethereum could give the NFT market a boost, as the leading blockchain for NFTs is due to move to a proof-of-stake (PoS) consensus in the coming months. The transition aims to reduce the energy used in the Ethereum network by up to 99%.

“I think [the Merge] will create another spur of hype among the Ethereum fan base,” Lian said, warning that transaction fees will likely remain high.

Meanwhile, Yuga Labs projects continue their dominance of the bestseller list in July, with the company’s Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), and CryptoPunks all in the top five.

 

Original Source: https://www.investing.com/news/cryptocurrency-news/nft-market-slumped-by-25-between-june-and-july-2860876

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

NFT sales limp into August with a 25% drop from June to July amid crypto slump

NFT sales limp into August with a 25% drop from June to July amid crypto slump

Market analysts are mixed on outlook for non-fungible tokens, as some see mostly gloom, others point to glimmers of optimism.

Non-fungible token (NFT) sales in July on secondary markets fell 25% from June to US$650 million, the second month in a row under US$1 billion, according to data from NFT aggregation site CryptoSlam, and reflecting a broader crypto slump.

Sales had peaked in January at US$4.7 billion, with more than 1 million unique buyers in the market.

“The current [crypto] market right now is in a bear market,” Anndy Lian, blockchain author and entrepreneur and founding member of NFT creator studio Influxo, told Forkast in an interview. “So [NFT] sales actually reflect very much on how the market is reacting.”

Yehudah Petscher, NFT relations strategist for CryptoSlam, said he thinks the market has yet to find the bottom.

However, he did find some optimism in the number of unique buyers in the market, pointing out buyers fell just 7% month-on-month in July to 532,000, which remains higher than in the same month last year.

This shows, Petscher says, that while total sales in U.S. dollars are down, the number of transactions make for a slightly more optimistic outlook.

“NFTs are in rough place right now, but I still think in a very healthy place as far as growth [or] as far as transactions [are concerned],” Petscher said.

The so-called “Merge” for Ethereum could also give the NFT market a shot in the arm, as the leading blockchain for NFTs is slated to move to a proof-of-stake (PoS) network in coming months.

The move to PoS will reportedly reduce the energy used in the Ethereum network by up to 99%, blunting environmental criticism of how the network operates.

“I think [the Merge] will create another spur of hype among the Ethereum fan base,” Lian said, but warning that transaction fees — another common criticism of the Ethereum network — will likely remain high.

NFT and crypto markets now seem to be largely correlated, despite expectations during the NFT boom of late 2021 and early 2022 that they would be inversely correlated. The view then was investors would be less willing to buy NFTs when the crypto they were denominated in was gaining in U.S. dollar terms.

Rather than falling crypto values driving the price of NFTs up to compensate, the overall negativity in the market is driving prices lower to attract what buyers are there, Petscher said.

“There’s not a lot of liquidity and people are worried that there’s not going to be buyers when they’re looking to sell, so it is a race to the bottom,” Petscher said. “We can see that with prices across the board.”

Apes (still) rule

Projects from Yuga Labs continued to dominate the top of the bestseller list in July, with Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC) and CryptoPunks all in the top five.

This made the project the seventh to reach the US$1 billion in total sales mark, despite it only launching in May.

With over US$30 million in secondary sales in July, soccer-based collection Sorare came in third on CryptoSlam’s list. Sorare allows people to buy and sell players as part of a global fantasy football competition as another way to interact with the world’s game.

Petscher told Forkast that he expects sports to be a real growth area, as these tokens typically bring with them increased utility.

Another growth area is art, Petscher says, who sees attention beginning to move away from NFTs as simply profile pictures to more fully fledged pieces of art as more creators move into the space.

“It’s just the tip of the iceberg,” Petscher said. “Art [NFTs] are just starting, it’s here in a big way and it will just keep growing.”

 

 

 

 

 

 

Original Source: https://forkast.news/nft-sales-limp-july-25drop-june-crypto-slump/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j