The Twitter account for The Kobeissi Letter, a prominent commentary source on global capital markets, has reported that Bitcoin experienced one of its most extensive daily liquidations in history.
Bitcoin’s Liquidity Crisis: A Comparative Analysis
Starting at 4:30 PM yesterday, Bitcoin’s value plummeted by 7.5% in just 20 minutes, resulting in a staggering loss of $42 billion in market capitalization. This rapid mass-liquidation event surpassed the outflows witnessed during the FTX collapse in November 2022, indicating a potential market liquidity drying up.
A comparison chart between the recent Bitcoin liquidations and those during the FTX collapse last year illustrates the severity of the situation. This comparison highlights the severity of the problem and serves as yet another ominous signal, underscoring the decreasing liquidity observed in crypto markets over the past few weeks.
Bitcoin Ordinals NFT Market Faces Dramatic Decline
In stark contrast to cryptocurrency hype and excitement, the Bitcoin Ordinals nonfungible token (NFT) market is grappling with a significant setback.
DappRadar, a prominent analytics platform for decentralized applications, has flagged a staggering drop in BTC Ordinals NFT user activity. According to an Aug. 17 report, the once-booming market has seen trading volumes plummet by an astonishing 98% since May.
DappRadar’s data presents a concerning outlook for BTC Ordinals NFTs. The sales volume, which peaked at $452 million in May, has plummeted to a mere $3 million as of Aug. 14. This downward trajectory is also evident in transaction numbers, experiencing a staggering decline of approximately 97% to just 20,571 transactions during the same period.
DappRadar’s report highlights the significant decline, emphasizing its potential implications for the future of the Ordinals market. The decrease in sales and transaction volume portrays a diminishing level of enthusiasm and confidence in Bitcoin-based NFTs.
The report points to the possibility of broader issues impacting BTC Ordinals, potentially raising concerns about the NFT’s longevity and relevance within the NFT space.
One significant factor contributing to the uncertainty surrounding Bitcoin Ordinals’ future is the divided perspective within the BTC community regarding integrating NFTs into the network.
Unlike Ethereum and other blockchains, which have embraced NFTs, Bitcoin’s community remains polarized. This division poses a unique challenge to the sustainability of BTC Ordinals.
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