Data shows that trading volumes of non-fungible tokens (NFTs) decreased 97% after reaching a record high in January 2022.
Dune Analytics shows that the volume dropped from $17 billion at the beginning of 2022 to just $466 million in September.
NFT Marketplaces Experience Recession
The $2 trillion wiped out from the cryptocurrency market and rapidly tightening monetary policies have contributed to the fading NFT mania.
The biggest NFT marketplaces also witnessed the recession. Last month, OpenSea’s NFT trading volume decreased by 90% from its peak of $4.85 billion in January 2022. Other marketplaces, like LooksRare, Rarible, SuperRare, and Magic Eden, have all recorded similar drops in activity.
As part of a larger decline in the price of Ethereum (ETH), the price of NFTs has also dropped significantly. In contrast to early January, when an NFT typically brought over $2,000 per transaction, the average price today is only about $285.
According to the NFT market overview, published on August 7th by Footprint Analytics, NFT trade volume decreased by 40% in Q2, mainly due to waning interest. A DEXterlab survey showed that over 30% of crypto users “will never buy” an NFT.
On the Flipside
- After the initial hype, the NFT market faces normalization when projects search for NFT use cases.
- But at the same time, the number of wallets with at least one NFT has increased dramatically, from 3.36 million at the end of January to 6.14 million today.
Why You Should Care
NFTs revolutionized the industry by providing the possibility to turn physical assets into digital ones, eliminating intermediaries and shortening supply chains.
From 2022 to 2028, the worldwide NFT market is expected to expand at a remarkable CAGR of 23.9%, resulting in a massive market value of $19.57 billion. Also, experts predict that NFTs will be an essential building block of the metaverse.
Check out OpenSea’s latest developments:
OpenSea Collaborates to Create NFT Rarity Protocol – Launch Set For Next Week
Read more about the drop in sales volume on OpenSea:
NFT Trading Volume Drops to Yearly Lows on OpenSea