- OpenSea is the biggest NFT marketplace featuring the majority of digital collections in space.
- The NFT platform’s trading volume has down surged considerably.
- OpenSea CEO thinks that this crypto winter might go on for the upcoming 5 years.
The Tumbling NFT Boat
The cryptocurrency market is going through a rough time and it has taken the other sectors down with it. Among the industries remains the NFT space. According to DappRadar, a data aggregator, sales volume at the largest NFT marketplace, OpenSea, recently registered a down surge in daily trading volume by 99% from its peak. While the organization contested the number to some degree, it said that this considerable slowdown in activity is both anticipated and actual.
According to the metrics page, the daily sales volume of Ethereum at the NFT marketplace peaked at over 400 Million USD on 1 May 2022. In contrast, OpenSea produced 5 Million USD in ETH volume on 28 August. The magnitude of sales volume reduction plunges when denominated in ETH. The crypto asset itself has seen a down surge of nearly 50% since 1 May.
As per Dune Analytics, a data aggregator, OpenSea’s trading volume from May to July plunged by 62%, but it seems like there’s more to come. The downfall is following the same pattern that started in January. Monthly sales volume has reduced by 90% when denominated in USD, and 82% when denominated in Ethereum.
Meanwhile, the active user count decreased from 58,780 on 9 January to 23,620 on 27 August. Daily transactions decreased from 137,500 to 53,300 during the same time period. Floor values of NFTs have tanked throughout the year. Bored Apes Yacht Club is currently going for 72.4 Ethereum in contrast to 153 Ethereum on 30 April. Another collection CryptoPunks has gone down from 84 Ethereum to 67 Ethereum since the previous month.
The downturn of the cryptocurrency and NFT sectors affected the operations of OpenSea. During July, the organization was forced to cut-off 20% of its staff in preparation for what the NFT platform’s CEO thinks might be a 5-year crypto winter. But he thinks highly of the non-fungible tokens. He stated that ‘During this time, he expects to witness a boom in use cases and innovation in NFTs.’
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