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NFT Market Sees Significant Decline as OpenSea Volume Plummets 98%

The NFT market is facing a sharp downturn, with OpenSea's trading volume dropping 98% from its peak. Key factors include falling floor prices of major NFT projects and broader crypto market challenges.
Published on 2022-09-02

NFT Market Decline Accelerates

The non-fungible token (NFT) market is experiencing a significant downturn, with OpenSea, the leading NFT marketplace, seeing its trading volume plummet by 98% since its peak. This sharp decline has raised concerns about a potential burst of the NFT market bubble.

Dropping Sales Volume

OpenSea's daily NFT transactions have fallen drastically. On August 28th, the platform processed approximately $5 million in transactions, a 99% drop from its record high of $405.75 million on May 1st, 2022. Monthly volume has also declined by 90% from its peak of $4.85 billion in January 2022. In comparison, Ethereum (ETH) monthly volume has dropped 82% over the same period.

The decline in trading volume has been accompanied by a significant reduction in both users and transactions on the platform.

Falling Floor Prices

The floor prices of prominent NFT projects, such as Bored Ape Yacht Club and CryptoPunks, have also seen a notable decrease. The floor price for CryptoPunks has dropped 20% from its July high of 83.72 ETH, while Bored Ape Yacht Club has fallen 53% from its May high of 153.7 ETH. These declines suggest waning interest in NFTs and highlight broader challenges in the crypto market, including the collapse of Terra and the ongoing crypto winter.

Ethereum's Impact on NFT Prices

Ethereum, the blockchain platform behind over 90% of NFTs, has seen its native currency, ETH, drop significantly in value. From a high of $4,950 in November 2021 to below $1,500 in August 2022, this decline has further exacerbated the poor performance of the NFT market.

Waning Interest in NFTs

A recent survey by DEXterlab revealed that over 30% of crypto users have no interest in purchasing NFTs, further indicating a decline in market enthusiasm. Additionally, NFT trade volume decreased by 40% in Q2 2022, according to a report by Footprint Analytics, primarily due to waning interest.

OpenSea's Position in the Market

Despite the downturn, OpenSea remains one of the leading platforms in NFT sales and the largest marketplace. The platform has announced its support for Ethereum's Proof of Stake (PoS) after the upcoming Merge, but will not support any potential hard forks.

The current state of the NFT market reflects the broader challenges facing the crypto industry, with liquidity drying up and investor confidence wavering. As the crypto winter persists, the NFT market's future remains uncertain.

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