The Trading Volume on OpenSea Hits a Record Low
OpenSea’s sales volume has hit new lows in 2023 as the NFT winter deepens. Data from Dune Analytics reveals that the NFT marketplace OpenSea is experiencing a significant drop in monthly sales, particularly in Ethereum and Polygon-based non-fungible tokens (NFTs) during the month of October.
This decline in sales can be attributed to the waning interest in digital collectibles this year, a trend brought about by various challenges, including increased regulatory scrutiny and fluctuations in Federal rates.
OpenSea, a prominent NFT marketplace, has witnessed a continuous decrease in monthly sales since March 2023. In October, the sales volume for Ether-based NFTs on the platform dwindled to $49 million, marking a 51% decrease from the $74 million recorded in September and a staggering 92% decline from the $659 million reported in January.
Additionally, NFTs minted on the Polygon network have also seen their sales volume drop since reaching a peak of $109.12 million in February. In October, the figure fell to $2.7 million, representing a 40% decrease compared to the $4.5 million in September.
As the NFT industry experiences declining interest, it is worth noting that well-known projects like the Bored Ape Yacht Club have seen their floor prices plummet by over 80% since May 2022. This confirms the prevailing bearish sentiment in the market, which is further supported by a three-month floor price chart showing a consistent downward trend.
Despite the challenges faced by the NFT market, there is hope for a resurgence. Many analysts believe that the sector will recover, including YouTuber Giancarlo, who is optimistic about the current bullishness in the broader cryptocurrency market.
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According to him, NFT prices tend to surge during bull markets in the digital asset space, citing the example of punks, which saw their value increase 8-fold from 15 Eth to 120 Eth between June and October 2021, coinciding with Bitcoin’s rise from $28,000 to the $60,000 range.
Giancarlo believes that when individuals in the crypto space accumulate wealth, they are more likely to invest in NFTs and other blockchain-related projects, driving growth in the NFT market.
In essence, a crypto bull rally can lead to an influx of wealthier participants who are eager to spend their digital assets on speculative games and NFT exchanges, ultimately boosting the NFT market.
