Binance (Nikhilesh De/CoinDesk)
Trading volume for NFTs is at multi-year lows.
Bitcoin NFTs caused widespread network congestion in December.
Binance users will not be eligible for future Bitcoin NFT airdrops.
Cryptocurrency exchange Binance will cease support for Bitcoin-based non-fungible tokens (NFTs) as it undergoes a process to "streamline" its product offerings.
"Users are advised to withdraw their Bitcoin NFTs from the Binance NFT Marketplace" before May 18, Binance wrote in ablog post.
It added that users will not be eligible for future airdrops related to NFTs hosted on the Bitcoin network.
Despite a resurgence at the tail end of last year, several metrics, including the amount of unique buyers and trading volume in USD have slumped to multi-year lows, data fromnon-fungible.com shows.
Bitcoin NFTs are generated through a method called inscriptions, which inscribes references to digital art into small Bitcoin-based transactions.
In December, Bitcoin NFTs caused widespread network congestion, something that "exposed a vulnerability" in the network, according to Luke Dashjr, a Bitcoin Core developer.
The interest in Bitcoin NFTs has since waned. Still, investment continues to pour into the sector, with Bitcoin Ordinals wallet Oyl raising$3 million last month from the likes of Arthur Hayes and and BRC-20 creator Domo.