Opensea: the NFT giant sees its volumes collapse by 90%

News hardware Opensea: the NFT giant sees its volumes collapse by 90%

Definitely, the NFT sector is going through some turbulence these days. As the market for non-fungible tokens has fallen significantly since its peak, it’s time to take stock. Opensea, the largest NFT trading platform, suffered a considerable drop in trading volume, up to 90%.

The price of NFTs at its lowest

As you know, the entire NFT sector has experienced an unprecedented drop in interest. As with every nascent market, the rise of non-fungible tokens has been meteoric, but so has the fall.

This major drop is in particular the direct consequence of the fall in value of the crypto market. Indeed, it is generally necessary to have crypto such as ethereum or Solana to obtain its “blockchained” digital works. So, following Bitcoin’s price drop, non-fungible tokens followed the king of cryptos on its way down.

As a result, the floor price of several collections has fallen. As an example, an NFT Bored Ape saw its price halve compared to May 2021. If it took around 150eth to get an ape from Yuga Labs, today it takes 78eth.

Opensea Marketplace NFT volumes fell 90%

In addition to the decline in ethereum prices for the majority of collections, OpenSea’s trading volume is at its lowest level since the beginning of 2022. This data is very important since it is used to measure the interest global granted to non-fungible tokens. By summing up all the transactions during a given period, the trading volume provides a broad view of the market trend.

Thus, for several months, the NFT sector has recorded derisory figures compared to those generated at the height of the speculative bubble. According to data from The Block and Dune, the NFT market has seen a 90% drop in trading compared to January 2022.

Rising to 4.9 billion euros in January 2022, the total sum of transactions on Opensea represents only 451 million over the last month – making August the worst month for NFTs since the start of the year.

NFT Marketplace Monthly Volume – The Block

Opensea: the NFT giant sees its volumes collapse by 90%

This observation therefore indicates that Opensea users are much less likely to use the market. As a result, the entire NFT sector is the victim, since the platform alone represents more than 90% of total trade in non-fungible tokens.

However, several collections seem to resist…

Big brands continue to take advantage of the NFT market

No wonder the market is in such a downturn. Indeed, at the top of the speculative bubble, a multitude of projects were born each week. In the lot, several of these virtual art collections did not provide any fundamental value. From then on, a majority of these worthless NFTs saw their price drop to 0 at the end of the frenzied NFT wave.

Today, only the big brands seem to benefit from this market. According to Dune, Nike is going way over the top with its RTFKT collection. The sportswear brand has notably generated more than 180 million euros in revenue with NFTs. The other brands that have invested in web3 are also not to be pitied, with several million in turnover generated.

Volume NFT marks

After a whirlwind development, the data previously transmitted illustrates the moment of calm that reigns over the sector these days. While some see this as the end of NFTs, others believe that these movements help clean up the various projects that emerged during the speculative bubble. Indeed, if the source of motivation is no longer solely financial, this leaves more room for innovation and the possibilities offered by NFT technology in various sectors.

About NFTs

What is an NFT?

An NFT is the abbreviation of Non Fungible Token or non-fungible token in French. NFTs are cryptographic tokens issued on a blockchain.

By exploiting this technology at the genesis of cryptocurrencies, NFTs inscribe inviolable properties in this virtual register. As a result, NFTs are true attestations of digital ownership.

Is an NFT necessarily an image?

A distinction must be made between an NFT and the object associated with it. Indeed, the non-fungible token is above all a virtual property certificate and not the digital file as such. An NFT is usually associated with a photo or video, but it can also take the form of text, music or any other digital or physical format.

What is an NFT used for?

NFTs are generally used to assert property rights online. Thus, the owner of a token of a virtual work can collect royalties, ensure respect for the intellectual property of his digital object, etc.

This feature has notably enabled the NFT to shine in art by creating value and rarity in digital images available on the web. Also, beyond art, this technology offers multiple uses in several sectors such as in video games, the traceability of a product, etc.

How is the value of an NFT defined?

These tokens are non-fungible, i.e. they have a unique value unlike cryptos, which are fungible (1 bitcoin = 1 bitcoin).

The price of an NFT is therefore arbitrarily set by the owner of the token. This price is usually in cryptocurrency, most of the time in Ether (ETH).

How to buy and sell NFTs?

NFTs are generally bought or resold on trading platforms such as Opensea or Foundation.

What is an NFT mint?

The “Mint” or strike in French, is the initial sale process of a token. To permanently become part of the blockchain ledger, these new tokens must be mint. By this action, the user comes to complete a transaction with his fees to see his token appear first hand on the blockchain.

We wish to say thanks to the writer of this article for this incredible web content

Opensea: the NFT giant sees its volumes collapse by 90%

Find here our social media accounts as well as other pages related to it.