NFTs were the hottest topic in 2021, but in 2022, they fell sharply in popularity among users. OpenSea, the largest online marketplace for NFTs, is now seeing a 99% drop in trading volume since May, a drop that also coincides with falling prices in the cryptocurrency market, which is used to transact in this space.
Trading on OpenSea, the largest NFT marketplace, fell significantly over the summer
According to Fortune, on May 1, 2022, OpenSea saw a record $2.7 billion in transactions for buying and selling NFTs that day alone. By comparison, on Sunday, August 28, just $9.34 million in transactions were completed on OpenSea. The data was provided by DappRadar, which also counted users on OpenSea on that day at 24,020, a third fewer than in May.
Relative to the 57% drop in cryptocurrency value for Bitcoin and 59% for Ethereum over the same period, the prices of famous NFTs like Bored Ape Yacht Club and CryptoPunks also fell. BAYC is now worth 53% less than it was on April 30, while the CryptoPunks collection, which peaked in July, is now worth 19% less.
Of course, OpenSea reps say they’re not worried about the current situation:
“We’re here to play the long game because we see what’s possible, so we’re not worried about short-term volatility. We always expect excitement followed by deflation as community use cases evolve and technology becomes more sophisticated and creators find new ways by integrating greater utility into their projects.”, an OpenSea NFT market representative told Fortune.