This drop in trading volume follows a drop in users and transactions on the NFT marketplace.
OpenSea, the largest marketplace for non-fungible tokens (NFTs) has witnessed a significant fall in their daily trading volume.
This may be a big indication of the potential bubble burst of the NFT market.
OpenSea volume plunges
Notably, on May 1, 2023, the daily volume of OpenSea stood at $405.75M. The last 24 hours have seen a volume of only $2.2M per data from DappRadar.
The monthly volume has also seen a significant downturn of 90% from its peak of $4.85B in January 2022. According to The monthly Dune, the monthly drop in the same period stands at around 82%.
This drop in trading volume follows a drop in users and transactions on the NFT marketplace. The number of users on the general marketplace is approximated at 50,000.
This suggests that there has been a significant drop in users of NFT-related products in the last few months.
There is also a visible fall in the floor prices of NFT collections. For example, the floor price of the Bored Ape Yatcht Club (BAYC) has fallen 53% from a high of 153.7ETH on May 1 to a 72.5ETH on August 28.
NFT bubble burst
In April 2022, the market volume of NFTs had reached $480,738,395. But in August, the weekly volume is just a bit above $10M.
Amid the crash, Blur’s domination has continued, with the zero-fee marketplace accounting for 58.2% of the total market volume, while OpenSea only had 31.5%.
Back in July, Forbes had earlier reported that blue-chip projects like CryptoPunks, BAYC, Azuki, Mutant Apes have plummeted 62% within the month.
The weak NFT numbers appear to be primarily triggered by a negative Ethereum market. It is noteworthy that the price of 1 ETH dropped from $4,950 in November 2021 to under $1,500 in August 2023.
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