OpenSea NFT trading down 99%

A recent report from DappRadar revealed that trade volume on the largest NFT marketplace has now dropped by nearly 100%.

2022 doesn’t look like a great year for OpenSea.

In January, the Southern District of New York indicted and arrested OpenC’s former product manager, Nathaniel Chastain, for wire fraud. Then, a few months later, NFT Marketplace laid off 20% of its staff due to the upcoming CryotoWinter. Cryptowinter itself is there.

And now we have this situation.

OpenC recently experienced a huge drop in users. Most of these users have abandoned NFT trading altogether. Of course, this has resulted in a significant drop in transactions on the marketplace. Just how bad is it? Trading volume is currently down 99%.

The decline of NFT trading on OpenSea

Several data-analysis services, including DappRadar, have reported a decline in NFT trading activity in recent months.

DaRadar’s report is particularly interesting because it contains insights from the team’s co-founder and CEO, Skimantas Januskas.

According to Januškas, OpenSea processed about $5 million in transactions on its platform on August 28. While this number may seem normal to the untrained eye, those in the know will tell you that it’s down 99% from a few months ago.

Trade volume on OpenC actually peaked this year. On May 1, the platform processed more than $405 million. But in just three months, the NFT marketplace lost more than 90% of its users.

Of course, the decline in trading activity has also affected the prices of popular NFTs.

How CryptoPunks and BAYC prices are reacting

Two of the most popular NFT projects, CryptoPunks and Bored Ape Yacht Club, have recently dropped in price.

CryptoPunks floor is down about 20% since July when it reached 83.72 ETH. For the BAYC project, the price is down 53% from a high of 153.7 ETH.

Both projects have been around for years and are among the most popular in the NFT space. The floor price of an NFT is the minimum bid that the owner will accept for it Since there isn’t much buying interest, prices are falling as owners are forced to lower their asking prices.

What is the reason for NFT price fall?

About 90% of all NFTs traded on OpenSea are hosted on the Ethereum blockchain. The ETH price has been on a steady decline since November last year, which is probably one of the main reasons for the NFT price decline.

In November 2021, the price of ETH reached almost $5,000. However, by August 2022, it had dropped to around $1,500. Ironically, the lack of new interest in the NFT market has contributed to the price decline.

Where from here?

Regardless of market trends, a large community of NFT enthusiasts are committed to the technology and believe it has a bright future. Industry-based NFTs are still selling and keeping the ecosystem alive.

It is important to note that the success of a project does not depend on the price of its native token. The price is only a representation of market sentiment and does not necessarily reflect the intrinsic value of the project.

Time will tell if the current recession is just a phase or the beginning of a more prolonged decline.

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