Bitcoin Ordinals, the first version of non-fungible tokens (NFTs) issued on the Bitcoin network, is losing popularity. According to data aggregator NFT CryptoSlam, monthly sales of Ordinals dropped by 61% to $335 million in January compared to $868 million in December. Andy Liang, an intergovernmental blockchain expert and author of the book "NFT: From Zero to Hero," believes that market oversaturation of NFTs and competition from other blockchains like Solana are among the primary reasons for the decline in Ordinals sales.

Monthly NFT sales on Ethereum also decreased by 2.2% to $355 million, while NFT sales on Avalanche increased by 89% to $46.7 million in January. The Dokyo NFT collection accounted for the majority of sales volume on Avalanche, bringing in $31.4 million, which represents 67% of monthly sales on the blockchain.

Liang also notes that the contentious status of Ordinals in the Bitcoin community and their technical complexities may have affected their reputation and legitimacy. Sebastián Giemo, co-founder of the Web3 gaming engine Paima Studios, suggests that interest in Ordinals is shifting towards second-layer solutions for Bitcoin.

Despite the sales decline, the total number of Ordinals listings continues to grow. According to Dune data, there are over 59 million ordinary listings on the Bitcoin network. Liang expects that the upcoming Bitcoin halving will reignite interest in Ordinals, increasing their appeal as unique and collectible assets.