OpenSea NFT Trading Volume Falls 99% In Past 90 Days

Quick Summary:

• Opensea is the largest NFT marketplace that represents the overall trend of the NFT market situation. Opensea’s trading volume plunges 99% marking the lowest in the past 90 days.

Related: OpenSea – the first nonfungible token marketplace

Opensea, the largest NFT marketplace is under clouds as the trade volume is facing a drastic low. The NFT trading platform has lost almost all of its volume. Hundreds of millions of dollars of NFTs get traded on Opensea. In the last 90 days, May 1^st was a golden day as it marked a record NFT sales of $405 million. Since then, the volume has been plunging and on August 28 it recorded $5 million, the lowest in 90 days.

The possible reason for Opensea trade volume fall

NFTs are defined as crypto, they are not a separate asset and their dependency on crypto offers them decentralization, security, and scalability but the nefarious volatility also comes along. If crypto, particularly Ethereum, drops in value, the NFTs valued in Ethereum also get devalued. An NFT selling for 10 ETH could be worth $200,000 when Ethereum is at $2000 but the same NFT can be worth $150,000 when Ethereum drops to $1500. That’s the first issue but the problem does not stop there.

The bearish market exerts bearish pressure on NFTs and people start to liquidate their NFT holdings, mostly below the floor price. This sends a shockwave across all the collections and the NFT traders get discouraged and they prefer to hold their collections. The data shows that even though the number of Ethereum traders has been falling drastically in the last 3 months, the number of holders is still on the rise. 

The number of NFT holders has increased overall by 26% which is huge. Nevertheless, the number traders has been reduced by 14% among all platforms in the last 3 months. The holders are increasing in a steep line however, but traders are decreasing at a horrific rate. Bitcoin struggles to find support where it can make a base to grow eventually. If Bitcoin stumbles more in the coming days, the NFTs holders will suffer more than anyone else.

Conclusion:

The dwindling trade volume is a major concern for the NFT marketplace because if no one trades, no one pays fees. However, the increasing number of NFT holders is a silver lining that depicts that people still believe in NFTs, they just don’t think it’s the right time to sell.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.