The NFT bubble has bust - OpenSea sees its trade volumes drop almost 99% over 90 days
The NFT boat is sinking
Published: 29th August 2022 | Source: cointelegraph |
OpenSea has seen its trading volumes plummet as investors move away from NFTs
The NFT trade is crumbling, and OpenSea, the world's largest NFT trading marketplace, has seen its trading volume drop by almost 99% over the past three months. On May 1st, at the company's peak, OpenSea traded $405.75 million worth of NFTs, and on August 28th, less than $5 million worth of NFTs were traded.
Over the past few months, OpenSea has seen a dramatic drop in users and transitions and an even larger drop in the value of those transactions. Reduced demand has seen the value of NFT drop significantly, both in terms of their cryptocurrency cost (as NFTs are trades using a blockchain's native currency), and due to the fact that the value of cryptocurrencies has dropped significantly.
On May 1st, Ethereum (the most popular cryptocurrency for NFTs) was worth almost $5,000 per cryptocoin. Now Ethereum is worth less then $1,500 per coin.
Given today's macroeconomic circumstances, with many nations facing recessions, cost of living crisis', and rising energy costs, it makes a lot of sense that both people and institutions are reassessing the value of their investments. With cryptocurrencies and NFTs lacking any innate value, it makes sense that both are seeing their prices drop as the world to more stable investments.
(OpenSea Ssers, Volume, and Transactions, via DappRadar)
In time, it is likely that the value of NFTs and NFT trade volumes will continue to decrease. There is no reason to believe that NFT values will suddenly increase with rising fuel costs and the chill of winter place additional financial strain on many major economies.