OpenSea trading volume is down 99% from all-time highs
OpenSea trading volumes have fallen 99% since hitting their all-time high in May. Data collected by DappRadar confirms that the popular NFT marketplace saw just $9.34M worth of transactions last weekend. Still, the NFT community sees a bright side in the new statistics: fewer scams and more valuable projects may remain!
How did OpenSea trading volume drop by 99%?
Leading NFT marketplace OpenSea is entering the fall on the wrong side, cutting its trading volume by 99%. The latest data from DappRadar shows that $9.34M worth of transactions were completed on Sunday. That’s surprisingly less than $2.7 billion Recorded on May 1st, when the platform reached an all-time high.
Furthermore, the platform had 24,020 active users throughout Sunday – 1/3 less than on May 1st. These related figures come shortly after OpenSea faced a lawsuit over its stolen NFT policy (which they eventually had to update).
Is low trading volume a good thing after all?
Shortly after the release of Sunday’s trading volume data, an OpenC spokesperson released an optimistic statement:
“We’re playing the long game because we see what’s possible, so we’re not concerned about short-term volatility. We’ve always expected hype, hype and deflation as communities and use cases evolve, as technology becomes more sophisticated and creators figure out how to build more utility into their projects.”
Additionally, some members of the NFT community believe that fewer OpenSea transactions could be a good thing. Here’s a reason why:
Of course, there is no evidence to suggest that reduced trading volume means more valuable NFT projects. Even if this is true, this theory does not make the statistics any less alarming.
What else happened to OpenSea?
As its trading volume figures continue to decline, OpenSea is focusing on its seaport protocol. Seaport aims to improve user experience by reducing NFT transaction costs.
The most recent addition to the seaport is its polygon integration Published on Wednesday. Accordingly, the new feature will allow bulk transfers to polygons, creator payouts and new attribute offerings.
All of these promising features come after a tough summer, though. Back in July, OpenSea co-founder Alex Atallah surprisingly resigned to start a new project from scratch. A week after his announcement, the company laid off 20% of its employees, CEO Devin Finger confirmed.
In conclusion, the past quarter was full of change for the popular NFT marketplace. Nevertheless, OpenSea’s seaport innovation and improved UX can increase trading volumes even in “crypto winter”.
All investment/financial opinions published by NFTevening.com are not recommendations.
This article is educational material.
As always, do your own research before making any type of investment.
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