Bitcoin Displaces Solana in NFT Trading Volume – Cryptopolitan
Nonfungible tokens (NFTs) and memecoins traded on Bitcoin have witnessed an increase in monthly trading volume in May, surpassing Solana’s volume, as reported by CryptoSlam data. Although Ethereum continues to lead the pack with $393 million in NFT volume, Bitcoin has gained significant ground over popular blockchains such as Polygon, ImmutableX, BNB Chain and Solana during this period.
Bitcoin leapfrogs Solana to take second place
Data from a Dune dashboard by Domo, the creator of the BRC-20 token standard on Bitcoin, reveals that BRC-20 token transactions accounted for the majority of activity on the network. The BRC-20 token standard, an experimental fungible token standard built on Bitcoin, has drawn attention to memecoins – speculative cryptocurrencies driven by enthusiast communities.
During the first half of May, the total market capitalization of BRC-20 memecoins passed $1 billion, fueled by growing hype. However, it is important to note that popular BRC-20 tokens such as ORDI, PEPE and MEME have no associated utilities and were issued primarily for experimental purposes. For example, ORDI was created by Twitter user Domo to showcase the functionality of BRC-20 tokens on Bitcoin.
The trading volumes of the BRC-20 tokens originate primarily from traders looking to capitalize on the recent craze. As the initial hype subsides, it is expected that the trading activity around the BRC-20 tokens will also decrease.
The Bitcoin network will strive to catch up with Ethereum
The market has also witnessed a shift from BRC-20 tokens to media-based ordinals, particularly BTC NFTs. Magic Eden, a prominent BTC NFT marketplace, has begun competing with UniSat, which primarily trades in BRC-20 tokens. While pools like Bitcoin Frogs have shown promising trading volume, they are still far behind top Ethereum pools like Bored Ape Yacht Club (BAYC), which achieved over $40 million in trading volume between April 23rd and May 23rd.
Although the BTC NFT ecosystem currently lags behind Ethereum, which offers advantages such as integration with the $27.5 billion decentralized financial ecosystem and support for decentralized autonomous organizations, NFT traders on Bitcoin hope to replicate Ethereum’s success. The challenge lies in developing loyal communities similar to those formed around collectives such as CryptoPunks, Milady Maker, Azuki and BAYC.
As the trading volume of NFTs and memecoins on BTC secured second place in May, the NFT collections on the network must continue to benefit and cultivate a loyal community of holders. The future of Bitcoin NFTs will be determined by their ability to deliver unique benefits and foster exclusive communities, similar to the achievements seen with CryptoPunks, Milady Maker, Azuki and Bored Ape Yacht Club on Ethereum.
