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Bitcoin NFTs Take Center Stage as Halving Event Approaches
Bitcoin-based non-fungible tokens (NFTs) known as Inscriptions have garnered significant attention as the highly anticipated network halving event draws near. Data from CryptoSlam has revealed that Bitcoin NFTs have emerged as a dominant force in the market, constituting 55% of the total NFT trades observed in the past week. Surpassing Ethereum and Solana combined, the trading volume of Bitcoin NFTs has showcased remarkable growth in recent days.
Bitcoin NFT Sales Soar
During the preceding week, Bitcoin NFT sales skyrocketed by 96%, totaling an impressive $176.8 million. Noteworthy is the fact that four out of the top five best-selling NFT collections during this period were centered around Bitcoin Ordinals. While Ethereum trailed with $62.2 million in sales and Solana recorded $41.9 million, Bitcoin NFTs stood out as the clear frontrunner in the market.
Notable Bitcoin NFT Collections
- Uncategorized Ordinals: This collection emerged as the top performer, with sales exceeding $55 million across more than 53,000 transactions. By allowing users to embed files, such as images, into satoshis (sats), the smallest unit of Bitcoin, Ordinals have witnessed widespread adoption since their launch in January 2023.
- PUPS: The meme coin PUPS secured the second position, with sales surpassing $44 million, driven by the excitement surrounding the upcoming Runes Protocol.
- NodeMonkes and WZRD BRC-20: These collections claimed the third and fourth spots, respectively, each generating over $10 million in trading volume.
Factors Fueling Volume Growth
DWF Ventures, a prominent venture capital firm, has attributed the exponential surge in Ordinals volume to the imminent Bitcoin halving event and the upcoming launch of the Runes Protocol. Notable NFTs like NodeMonkes, BitcoinPuppets, and QuantumCatsXYZ have played a pivotal role in driving the heightened activity witnessed in Bitcoin NFTs.
The impending Bitcoin halving event, set for April 20, will reduce miners’ rewards to 3.25 BTC, altering the dynamics of the mining ecosystem. Concurrently, the Runes Protocol aims to establish itself as the fungible counterpart of Ordinals, leveraging the Unspent Transaction Output (UTXO) model to facilitate the seamless creation, naming, and transfer of digital assets exclusively within the Bitcoin network.
Amidst this burgeoning growth, Binance’s recent decision to discontinue support for Bitcoin NFTs on its platform has prompted NFT traders to swiftly transition to alternative platforms such as Magic Eden. Notably, Bitcoin NFTs constitute more than half of the total cross-chain volume on Magic Eden, underscoring their significant presence in the NFT ecosystem.
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