News hardware Opensea: The NFT giant sees its volumes collapse by 90%
The NFT sector is certainly going through turbulence these days. Since the market for non-fungible tokens has fallen significantly since its peak, it’s time to take stock. Opensea, the largest NFT trading platform, saw a significant 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 any nascent market, the rise of non-fungible tokens has been meteoric, but it has also declined.
In particular, this large drop is the direct consequence of the drop in the value of the crypto market. In fact, it is generally necessary to have crypto such as ethereum or Solana to get its “blockchained” digital works. So after Bitcoin’s price drop, non-fungible tokens followed the king of cryptos on the way down.
As a result, the floor price of several collections has dropped. As an example, an NFT Bored Ape saw its price cut in half compared to May 2021. If it took around 150. to get a monkey from Yuga Labs, today it takes 78.
Opensea Marketplace NFT volume down 90%
In addition to the drop in ethereum prices for the majority of pools, OpenSea’s trading volume is at its lowest level since early 2022. This data is very important as it is used to gauge global interest in non-fungible tokens. By summarizing all transactions in a given period, trading volume provides a broad overview of the market trend.
Thus, for several months, the NFT sector has registered ridiculous numbers 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 during the last month – making August the worst month for NFTs since the start of the year.
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, as the platform alone represents more than 90% of the total trading of non-fungible tokens.
However, several collections seem to resist…
Big brands continue to benefit from the NFT market
No wonder the market is in such a slump. At the peak of the speculative bubble, a multitude of projects were actually born every week. In the lot, several of these virtual art collections provided no fundamental value. From then on, a majority of these worthless NFTs saw their price drop to 0 at the end of the crazy NFT wave.
Today, only the big brands benefit from this market. According to Dune, Nike goes way over the top with its RTFKT collection. In particular, the sportswear brand has generated more than 180 million euros in revenue with NFTs. The other brands that have invested in web3 are not to be pitied either, with several millions in revenue.
After a whirlwind development, the previously transmitted data illustrates the moment of calm prevailing over the sector these days. While some see this as the end of NFTs, others believe that these moves help clean up the various projects that emerged during the speculative bubble. In fact, if the source of motivation is no longer exclusively financial, it gives more room for innovation and the opportunities that NFT technology offers in different sectors.
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.
Leveraging this technology in the creation of cryptocurrencies, NFTs inscribe inviolable properties in this virtual registry. 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 associated object. In fact, 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. The owner of a token of a virtual work can thus collect royalties, ensure respect for the intellectual property of his digital object, etc.
This feature has especially allowed NFT to shine in art by creating value and rarity in digital images available online. In addition to art, this technology also offers several applications 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 ie. 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 coin?
“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 in the min. By this action, the user gets to complete a transaction with his fees to see his token appear first hand on the blockchain.