On OpenSea, the most prominent non-fungible tokens (NFTs) marketplace, NFT trading volume has significantly decreased, plummeting by 98% since its peak. As the crypto winter continues, concerns about the possibility of an NFT market bubble burst mount.
Dropping Sales Volume
The OpenSea marketplace processed nearly $5 million worth of NFT transactions on August 28th. It is approximately 99% lower than its record high of $405.75 million on May 1st, 2022, according to DappRadar.
Across a monthly period, OpenSea’s volume has decreased by 90% from its peak of $4.85 billion in January 2022. The monthly decline over the same period for Ethereum (ETH) is almost 82%.
The massive declines in daily and monthly volumes coincided with equally drastic drops in OpenSea users and their transactions.
NFT Bubble Bursting
It is also noticeable that the floor prices of NFT projects are falling. The floor price is the minimum bid one is ready to pay for an NFT. The tendency is visible in such iconic NFT projects as Bored Ape Yacht Club and CryptoPunks.
The floor price for CryptoPunks dropped around 20% from its July high of 83.72 ETH. Bored Ape Yacht Club dropped by 53% from a high of 153.7 ETH at the beginning of May. The floor price of NFTs risks plunging further if the market’s liquidity continues to dry up.
The price change also refers to the waning interest in NFT and the broader problems of the crypto market, like the collapse of Terra and the continuing crypto winter.
The native currency of the blockchain on which NFTs are launched influence the prices. Ethereum blockchain accounts for more than 90% of all digital assets. The price of 1 ETH has fallen from $4,950 in November 2021 to below $1,500 in August 2022. This is one of the drivers behind poor NFT performance.
On the Flipside
- According to the NFT market overview, published on August 7th by Footprint Analytics, NFT trade volume decreased by 40% in Q2, mainly due to waning interest.
- A DEXterlab survey showed that over 30% of crypto users ‘will never buy’ an NFT.
On the Flipside
OpenSea is one of the leading platforms in NFT sales and the biggest marketplace.
More about OpenSea approaching Ethereum merge:
OpenSea Will Support Ethereum (ETH) PoS After Merge, Won’t Support Hard Forks
More about the NFTs:
Top 10 Weirdest Things That Have Been Minted and Sold as NFTs