Binance made an announcement on April 4, stating that it would halt trading and deposits of Bitcoin Ordinals starting from April 18, 2024. Furthermore, the exchange advised holders of Bitcoin-based non-fungible tokens (NFTs) to withdraw their assets from the Binance NFT marketplace before May 18, 2024.
While Binance did not provide specific reasons for suspending Bitcoin Ordinals, it mentioned a desire to “streamline product offerings” on its platform. Additionally, Binance NFT marketplace users will no longer receive airdrops, utilities, or benefits related to Bitcoin NFTs after April 10, 2024.
The decision to discontinue support for Bitcoin Ordinals follows a period of waning interest and trading activity in the NFT market, including Bitcoin-based NFTs, which has been observed through data from non-fungible.com and Statista. NFT sales have significantly decreased since their peak in August 2021, raising concerns about the sustainability of such assets.
Concerns have also been raised regarding the impact of Bitcoin Ordinals on the security and congestion of the Bitcoin network. Luke Dashjr, a prominent Bitcoin Core developer, highlighted network congestion and increased fees caused by Bitcoin NFTs, exposing vulnerabilities in the network. The influx of inscriptions on the Bitcoin network has resulted in congestion and high transaction fees, prompting discussions about the appropriateness of hosting NFTs and BRC-20 tokens on the Bitcoin network.
While some argue that Bitcoin Ordinals have driven innovation and decentralization within the network, others express concerns about their compatibility with Bitcoin’s original purpose as a peer-to-peer financial system. This debate reflects broader discussions within the cryptocurrency community regarding the role and impact of NFTs on various blockchain networks.