Cryptocurrency exchange Binance has announced its decision to discontinue support for Bitcoin-based non-fungible tokens (NFTs) as part of its efforts to streamline its product offerings. Users of Binance have been notified to withdraw their Bitcoin NFTs from the Binance NFT Marketplace before May 18, as the exchange will cease support for these assets after this date. Additionally, users will not be eligible for future airdrops related to NFTs hosted on the Bitcoin network.

The Decline in Bitcoin NFT Activity

Despite a brief resurgence towards the end of the previous year, metrics such as the number of unique buyers and trading volume in USD have declined to multi-year lows, as per data from non-fungible.com.

Bitcoin NFTs, generated through a method known as inscriptions, caused significant network congestion in December, exposing vulnerabilities in the Bitcoin network, according to Luke Dashjr, a Bitcoin Core developer.

Continued Investment in the NFT Sector

While interest in Bitcoin NFTs has diminished, investment in the broader NFT sector continues. Notably, Bitcoin Ordinals wallet Oyl recently raised $3 million in funding from notable figures such as Arthur Hayes and Domo, the creator of BRC-20.

In conclusion, Binance’s decision to stop supporting Bitcoin NFTs reflects a broader trend in the crypto industry towards simplification and optimization of product offerings, amidst ongoing challenges and opportunities within the NFT sector.