NFT trading volume down 98 percent since January
Weekly trading volume in non-fungible tokens (NFT) across the industry has plummeted to just $114.4 million, according to new data from Dune Analytics.
That would mean a massive plunge of a whopping 98% from the $6.2 billion it was still trading at the end of January. At the beginning of April, the weekly trading volume had even reached the current record high of 146.3 billion US dollars before the bear market in the crypto industry also caused the NFTs to crash in May.
But at least there is reason for hope, because in the same period the number of wallets holding at least one NFT has increased from 3.36 million in early January to 6.14 million now. Meanwhile, there is also a power shift in the NFT marketplaces, because while LooksRare was still the leader in terms of trading volume at the beginning of the year, the top spot can now be found again with OpenSea.
The average NFT price has also fallen noticeably, which is not least due to the slump in the Ethereum (ETH) price, because the second largest cryptocurrency is the primary means of payment for the digital artworks. An average NFT is currently only 285 US dollars, whereas in January an average of 2,000 US dollars had to be paid.
Tony Ling, the founder of NFTGo, is nonetheless confident that innovation will continue to drive adoption of NFTs. An example of this is the Austrian Post, which issued special NFT stamps in July.
Meanwhile, the luxury brand Tiffany & Co. has launched an NFT collection based on the popular CryptoPunks and has caused a stir. For now, however, the NFT market continues to decline, with weekly trading volume down 30% compared to August.