Data indicates that Binance’s NFT marketplace was not a popular choice for Ordinals, as traders are now more interested in Runes. The decision by Binance to discontinue support for Ordinals in April surprised Bitcoin enthusiasts. The exchange, facing legal challenges on various fronts, explained that this move was meant to streamline its product range. It also advised Bitcoin NFT holders to transfer their assets elsewhere to remain eligible for airdrops.
This shift by Binance, the largest crypto platform by trading volume, is quite significant. Ordinals, a recent technological development allowing inscriptions on a single satoshi (equivalent to one 100-millionth of a Bitcoin), have been criticized for potentially congesting Bitcoin’s blockchain. Despite Binance’s previous support for Ordinals, the exchange abruptly ceased operations on April 18, leading to a decline in sales volumes, unique buyers, and sellers, according to data from CryptoSlam!.
Revenue from Ordinals sales dropped from $28.2 million on April 19 to $11.4 million on April 26, with a significant decrease in the number of buyers and sellers. However, factors such as the recent Bitcoin halving and the introduction of Runes, a new standard for efficient fungible token deployment on Bitcoin, have also influenced market dynamics.
The launch of Runes on April 20 resulted in a drop in Ordinals transactions on the Bitcoin blockchain, with Runes quickly gaining popularity. Binance’s exit from the Ordinals market is not solely responsible for the decline in demand, as Runes have emerged as a strong competitor.
Despite Binance’s ban or restriction in 20 countries worldwide, collectors of Ordinals may not be greatly affected by the exchange’s departure from the market. Other platforms like OKX and Magic Eden have gained prominence in handling Ordinals transactions. The question now is whether Binance will introduce support for Runes in the future to capitalize on the growing demand for memecoins on the Bitcoin network.
While demand for Ordinals has decreased, Bitcoin remains a leading blockchain for NFT sales, surpassing Solana and recently regaining the top spot from Ethereum. If interest in Bitcoin NFTs rebounds, Binance’s decision to withdraw support for Ordinals may prove to be shortsighted. As exchanges compete fiercely on transaction fees, diversifying revenue streams remains a priority for trading platforms.