In a recent announcement on April 4, Binance revealed its decision to suspend Bitcoin Ordinals trades and deposits starting from April 18, 2024. The exchange also urged Bitcoin-based NFT holders to withdraw their assets from the NFT marketplace before May 18, 2024. Although Binance did not provide a specific reason for this suspension, it mentioned that it aimed to streamline its product offerings on the platform. Moreover, the exchange disclosed that it would discontinue airdrops, utilities, and benefits related to Bitcoin NFTs after April 10, 2024.
Despite Binance’s move to suspend Bitcoin Ordinals, OKX has announced plans to support four new inscription standards, highlighting the continued importance of Bitcoin NFTs in 2024. Bitcoin Ordinals, also known as Bitcoin NFTs, enable users to embed various forms of digital content onto the Bitcoin blockchain, including music, audio, text, video, images, and art. The inclusion of Bitcoin Ordinals on Binance in 2023 initially generated excitement among collectors, but the abrupt suspension less than a year later has left many community members surprised by the decision.
The decision to end support for Bitcoin Ordinals comes at a time when overall interest and trading activities in the NFT market, including Bitcoin-based NFTs, are experiencing multi-year lows. Data from non-fungible.com indicates a significant decline in NFT sales across various blockchains, including Ethereum, with Bitcoin Ordinals also being adversely affected. Furthermore, concerns have been raised about the impact of Bitcoin NFTs on the security of the Bitcoin network and the congestion they create. Luke Dashjr, a prominent Bitcoin Core developer, highlighted how Bitcoin NFTs had led to network clogs, increased fees, and exposed vulnerabilities within the network.
Since their introduction, Bitcoin Ordinals have resulted in a surge of inscriptions on the Bitcoin network, leading to congestion and high transaction fees. Dune Analytics data shows that the Bitcoin network has recorded over 64.17 million inscriptions, generating more than $430.7 million in transaction fees. This surge has sparked a debate within the community regarding the presence of inscriptions representing NFTs and BRC-20 tokens on the Bitcoin network. Some argue that Bitcoin was originally designed for peer-to-peer financial transactions and may face similar issues to the Ethereum chain, including scammy meme coins and rising transaction fees, with the influx of Bitcoin Ordinals.
Future of Bitcoin Ordinals and NFTs
The rise of Bitcoin Ordinals has brought both positive momentum and innovation to the Bitcoin network, serving as a potential pathway towards decentralization. While some experts believe that Bitcoin should focus solely on P2P financial transactions, others argue that the inclusion of NFTs and tokens can drive innovation and progress within the network. As the debate continues, the impact of Binance’s suspension of Bitcoin Ordinals on the NFT market remains to be seen, with potential implications for the broader cryptocurrency ecosystem.