NFT trading volume on OpenSea falls to one-year low as crypto winter hits
Worrying about the possibility of a market bubble, OpenSea, the largest marketplace for non-fungible tokens (NFTs) in the world, has seen a significant decrease in the daily volumes of its trades.
Notably, trading volume in the NFT market fell as low as $10.05 million as of August 26, the lowest since July 2021, marking a one-year low as the effects of crypto winter hit. According to the latest data from DappRadar shows that volume had improved marginally to $13.49 million as of August 30.
Interestingly, this volume is a big difference between what was seen in May 2022, when NFT trading volume on OpenSea increased as high as $405 million.
With trading volume on the most prominent NFT marketplace, OpenSea, down 99% since its peak in May, the market that was previously driven by “Fear Of Missing Out” (FOMO) and surged during the crypto bull market of 2021 is now slowing .
NFTs are feeling the cold of crypto winter
According to the DAO maker, “crypto winter has hit NFT sales hard,” the platform notes that trading volume has fallen by about 90% ($500 million) and trading fees have fallen by about 95% ($8 million).
This leads one to believe that the value of blockchain-based collectibles as well as interest in them has decreased over the past few months.
This is further shown by the decreasing floor price of the best digital collection projects, which refers to the minimum amount that a person is willing to spend for an NFT.
OpenSea is seeing an influx of fraudsters and thieves
As the cryptocurrency industry grows larger, scammers and thieves have become abundant, with NFTs proving an increasingly attractive target.
Predictably, as the largest NFT marketplace, OpenSea has been the target of these thefts far too many times and has attempted to tackle the problem with relative success, forcing it to adjust its stolen digital asset policy.
Interest in NFTs is waning
Earlier in August, Finbold reported that non-fungible tokens trading volume for the second quarter had fallen by 40% as interest in NFTs waned. Another survey also revealed that over 30% of crypto users would ‘never buy’ an NFT.
An industry study in June also revealed that the majority of users, namely 64.3% of those interviewed, only bought NFTs “to make money.” It probably shouldn’t come as a surprise that trading volume fell during the second quarter, given that more than half of investors buy NFTs solely to increase their financial position.
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