NFT volume down 93% since January, is this the beginning of the end?
NFT’s trading volume had seen a wild upswing back in the noise in 2021. By the beginning of 2022, the market had begun to reach its peak as interest flourished. However, after reaching a record high in January 2022, the volume had begun to decline. The following months would see lower values, and by June it was down 93% from ATH. This decline has raised concerns about the future of NFTs.
Is NFT dying?
The volume recorded in January and the months leading up to it had been below the beef market. Therefore, more people were willing to risk money for these ‘jpegs’. It is also worth mentioning that dollar volumes were so high because the prices of digital assets such as Ethereum and Solana had been on the rise. But by June, when the market crash had occurred, the dollar value of the traded NFT had plummeted.
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When we look at the charts, it shows that the total NFT sales volume across all marketplaces had reached $ 16.57 billion in a single month. The month of June was far from this with only $ 1.03 billion in NFT trades registered for the month. This inadvertently shows that interest in the place is declining.
NFT collections grow 15k | Source: IntoTheBlock
Despite the declining interest, the number of collections launched has not decreased in any way. Data show that more than 15,000 NFT collections were launched in June alone, compared with around 13,000 collections for the previous month.
OpenSea continues to dominate
Through the ups and downs, OpenSea has maintained its lead in NFT trading. It has established itself as the first major NFT trading platform in space and as such is still highly favored among investors. The addition of other networks such as the Solana network has also helped increase the market’s popularity. However, this does not mean that the market is without competition.
Competitors such as LooksRare have quickly stolen market share from OpenSea, and with the launch of the NFT marketplace early in the year, it had stolen most of its market share. Even if it’s only a while.
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Currently, OpenSea maintains more than 55% of the entire NFT volume recorded for the previous month. LooksRare, which is fast becoming an investor favorite because of its rewards, accounts for 32.45%. Magic Eden, the No. 1 Solana NFT marketplace, accounts for 12.49% of the total market share.
As trading volume is expected to decline over the next few months, it is expected that these platforms will be locked in a fierce battle for dominance of the NFT area.
Featured image from Forbes, chart from TradingView.com
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