Selloffs Plague NFT Markets: Are Traders Losing Interest?
- Sellers dominated NFT trading as volume declined across exchanges.
- Polygon, Solana and Ethereum-based projects testify to reduced activity.
The non-fungible token [NFT] the market experienced an increase in interest such as collaborations and collections such as Milady [LADYS] caught the attention of traders. However, recent data suggested that the excitement may be waning.
NFTs on sale
According to NFTstatistics.eth, the past few days have witnessed the highest percentage of Ethereum [ETH] volume on Blur [BLUR]with sellers overwhelmingly dumping in bids.
This trend, where 92% of ETH’s volume has consisted of dumping bids, is a negative indicator for the NFT market. This means that sellers are larger than buyers, which can potentially lead to a decrease in demand and market activity.
Today’s charts (June 8, 2023):
1/5
The last 2 days have had the highest percentage of ETH volume on Blur *ever* with sellers dumping bids.
92% of ETH volume has been sellers dumping into bids.
— NFTstatistics.eth (@punk9059) 8 June 2023
Furthermore, Dune Analytics’ data revealed a significant drop in trading volume across exchanges in recent days. Alongside the declining volume, the number of traders participating in the market also fell.
OpenSea remained dominant in terms of NFT trades at press time, taking 47% of the market share. However, in terms of volume, Blur outpaced its peers, holding 5.2% of the market share.
Source: Dune Analytics
Especially the interest in NFTs from prominent protocols like Polygon [MATIC] and Solana [SOL] declined.
Dapp Radar’s data showed that popular NFTs on the Polygon network, such as y00ts and Trump Card Collection, witnessed a decline in the number of unique active wallets. Consequently, the transfer volume for these NFTs was also reduced.
Likewise, interest in Solana’s most sought-after NFTs waned at press time, as indicated by Solanafloor’s Blue Chip Index.
Source: Solanafloor
Even Yuga Labs’ highly popular NFT collection, Mutant Ape Yacht Club [MAYC], then a fall. Whales holding MAYC have sold an alarming 160 NFTs in the past few days.
This significant selling pressure may further drive down the floor prices of these NFT collections.
Source: Sentiment
The State of Ethereum
In addition to these concerns, there has been a significant decrease in the total number of NFT trades occurring on the Ethereum network. This has resulted in a significant decrease in gas use, which indicates reduced participation and interest.
The combination of these factors raises questions about the sustainability of and continued interest in the NFT market. It suggests that the initial hype and excitement surrounding NFTs may be waning, leading to a potential decline in trading activity and market participation.
