According to Dune data, the NFT is witnessing a severe decline as the network-wide NFT trading volume index hit $73.2 million in the past week, the lowest level in two years. Wherein, Blur, the no-fee NFT marketplace, currently accounts for the majority of weekly volume, 65.1%, compared to Opensea’s 23.7%.
Source: Dune
Adding to the concern, the number of users participating in NFT transactions across the entire network has also hit a two-year low, hovering around 50,000 users in recent weeks.
Source: Dune
The NFT market has been in the doldrums for quite some time. Compared to the heyday, the weekly trading volume could be as high as $1.8 billion by 2021.
In July 2023, a series of the most popular and sought-after NFT collections encountered a significant drop in price floors, highlighted by famous blue chip projects, including CryptoPunks, Bored Ape Yacht Club, Mutant Apes, and Azukis plummeted 62% for the month.
This market breach reflects an increase in investors’ risk aversion and a decline in confidence in the NFT. Investors may become more cautious and reluctant to make riskier investments, leading to a move to safer assets or a reduction in overall participation in the market.
Besides, this decline may continue shortly with negative impacts from regulators. Yesterday, the SEC, a powerful regulator that has no sympathy for the cryptocurrency market, took its first action against the NFT market by accusing Los Angeles entertainment company Impact Theory of developing and implementing NFT without registration, which is also the regulator’s first enforcement action against the NFT.
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