Research Summary
The report provides an in-depth analysis of the market capitalization and trading volume of Bitcoin-based non-fungible tokens (NFTs), specifically Ordinals and Runes. It highlights the increasing popularity of these NFTs, their historical development, and potential future growth.
Key Takeaways
Market Performance of Bitcoin-based NFTs
- Surge in Market Cap: The total market cap of the top 10 Bitcoin-based NFTs, including Ordinals and Runes, reached $1.03 billion in May 2024, with a daily average trading volume of $2.25 million. This indicates their growing prominence in the Web3 world.
- Leading Collections: The volume is primarily driven by popular collections such as NodeMonkes, Bitcoin Puppets, and Runestone, with market caps of $198.25 million, $144.12 million, and $87.85 million respectively.
- User Adoption: Bitcoin Puppets and NodeMonkes have shown significant month-on-month growth in unique holders, indicating increasing interest in these projects.
Popularity of Bitcoin NFTs & Ordinals
- Global Interest: Google searches for “Ordinals” and “Bitcoin NFTs” hit all-time highs in April and March 2024 respectively, indicating growing interest and adoption in the Bitcoin NFT ecosystem.
- Room for Growth: Despite lagging behind Ethereum, Solana, and Ronin in terms of sales volume, the number of buyers of NFTs on Bitcoin is significantly lower, suggesting potential for growth in user adoption.
History and Development of Ordinals and Runes
- Launch and Appeal: Ordinals, launched by engineer Casey Rodarmor in January 2023, differ from NFTs as all data is “inscribed” directly on-chains, making them akin to digital artifacts. This has increased their appeal for PFP projects and art collections.
- Introduction of Runes: To increase efficiency and solve the issue of excessive unspent transaction outputs (UTXOs), Runes were introduced. They optimize transactions on the Bitcoin network, opening up possibilities for scalability and improved user experience.
Actionable Insights
- Explore Bitcoin-based NFTs: Given the increasing interest and potential for growth, it may be beneficial to explore Bitcoin-based NFTs, particularly Ordinals and Runes.
- Monitor Market Performance: Keep an eye on the market performance of popular collections such as NodeMonkes, Bitcoin Puppets, and Runestone, as they are driving the volume in the Bitcoin NFT ecosystem.
- Understand the Technology: Understanding the technology behind Ordinals and Runes, including their unique features and benefits, can provide valuable insights for potential involvement in the Bitcoin NFT ecosystem.
