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The NFT market is plummeting and marketplaces are rethinking their strategies
After several weeks of consecutive gains, the NFT markets are facing a sharp decline. The market is down about 20% this week compared to last week. According to seven-day statistics, NFT sales totaled $153 million last week, with $84 million in sales from Ethereum.
However, according to data from Dune, daily trades have fallen steadily over the past three months. On March 13, approximately 44,000 NFT trades took place, but on June 12 the figure was closer to 25,000. Here is a quick overview of the market as it is.
TL;DR:
- The NFT markets have experienced a significant decline, with sales down 20% compared to last week.
- Despite the decline, there has been a 27% increase in active wallets linked to NFT activities, fueled by Milady’s NFT collection and Elon Musk’s support.
- Blur, LooksRare and Kraken are taking steps to stimulate the NFT market through improved incentives and the launch of their own platforms, despite the general decline in trading.
NFT Markets Face Decline: What’s Happening?
A recent DappRadar report suggests that NFT sales in May may have fallen below $1 billion for the first time this year. Despite this decline, the report’s analysis reveals a 27% increase in active wallets linked to NFT activities in May. This growth can be attributed to Milady’s NFT collection, which received a significant boost from Elon Musk.
To combat the declining trading activity, NFT marketplaces are strengthening incentives for traders. Blur, for example, announced updates to its incentive system on June 7. With this new update, it rewards bidders who take real risks with the highest number of bid points. LooksRare, once a high-volume marketplace, has experienced a decline since May 2022, but aims to regain its former glory by launching its own rewards system on June 1st.
Undeterred by the low trading numbers, Kraken recently launched its own NFT trading platform, further crowding the market. From mid-May, Blur remains the largest NFT marketplace with a market share of 62%, while OpenSea follows at 26%. However, OpenSea has the largest number of traders, with 104,882 active users compared to Blur’s 12,747.
These declines could also be a result of recent hacks of major NFT influencers and crypto wars over regulations. While the NFT market has seen a decline in trades and sales, the growth of active wallets and the introduction of new incentives indicate ongoing development and efforts to revitalize the market.
