Since its peak, the trading volume of non-fungible tokens (NFTs) on OpenSea, the most popular marketplace for NFTs, has dropped by 98%. As the crypto winter goes on, there are more worries that the NFT market bubble could burst.
Dropping Sales Volume
On August 28, nearly $5 million worth of NFT transactions were made through the OpenSea Marketplace. DappRadar says that it is about 99% less than its all-time high of $405.75 million on May 1, 2022.
From its peak of $4.85 billion in January 2022, OpenSea’s volume has dropped by 90% every month. During the same time period, Ethereum (ETH) has dropped almost 82% each month.
Related: OpenSea says that after Merge, the market won’t support forked NFTs.
The daily and monthly volumes dropped by a lot, and so did the number of OpenSea users and their transactions.
NFT Bubble Bursting
It is also clear that the prices of the floors in NFT projects are going down. The floor price is the lowest amount that a buyer is willing to offer for an NFT. Some of the most famous NFT projects, like Bored Ape Yacht Club and CryptoPunks, show this trend.
From its high of 83.72 ETH in July, the floor price for CryptoPunks fell by about 20%. From its high of 153.7 ETH at the beginning of May, the price of Bored Ape Yacht Club fell by 53%. If the market continues to lose money, the floor price of NFTs could fall even more.
The change in price also has to do with the fact that people aren’t as interested in NFT anymore and with the bigger problems on the crypto market, like the collapse of Terra and the ongoing crypto winter.
The prices of NFTs are based on the currency of the blockchain on which they are launched. More than 90% of all digital assets are on the Ethereum blockchain. In November 2021, 1 ETH will cost $4,950. In August 2022, it was worth less than $1,500. This is one reason why the NFT doesn’t do well.
The other side
According to a market overview of NFTs that was released on August 7 by Footprint Analytics, the volume of NFT trades dropped by 40% in Q2 because people were less interested.
Related: A Texas man is suing OpenSea for more than $1 million in damages.
A survey by DEXterLab found that more than 30% of crypto users said they would “never buy” an NFT.
The other side
OpenSea is the biggest marketplace and one of the best places to buy and sell NFTs.
