August 2023 Saw A Two-Year Low In Ethereum NFT Trading Volume

August 2023 Saw A Two-Year Low In Ethereum NFT Trading Volume

August 2023 Saw A Two-Year Low In Ethereum NFT Trading Volume: Last month, activity on the marketplaces OpenSea, Blur, LooksRare, and X2Y2 dried up, causing the monthly trading volume of Ethereum-based Non Fungible Tocken to fall to its lowest point in two years.

According to The Block’s data dashboard, trading volume dropped to $407 million in August from July’s $599 million, a 32% decrease, and the lowest trading volume since June 2021.

The loss was headed by X2Y2, which fell 40% month over month, while trading volumes for Blur, OpenSea, and LooksRare fell 38%, 18%, and 8%, respectively.

August 2023 Saw A Two-Year Low In Ethereum NFT Trading Volume

OpenSea — had its lowest active-user count since July 2021, according to Dune Analytics, and had dominated the NFT marketplace scene, fielding investment offers at a $10 billion valuation. 126,000 active OpenSea users decreased by 12% in August.

Blue-Chip NFTs And Solana-Based Collections Are Less Popular

NFTs have been struck particularly hard after the 2021 market top, signaling declining demand, while the overall cryptocurrency market has seen major trading volume drops.

The Bitwise Blue-Chip NFT Collections Index, which includes some of the biggest NFT collections like CryptoPunks, Bored Ape Yacht Club, Azuki, and DeGods, is down 37% year to date while ether has gained 37% during the same time frame.

It hasn’t been much better for Solana, another blockchain used for creating and trading NFTs; daily trade volumes on Solana-based NFT marketplaces have dropped below $1 million for the first time since September 2021.

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Times Are Worrying For The NFT Industry

The Securities and Exchange Commission filed a case against the podcast production company Impact Theory on Monday, bringing its first NFT enforcement action.

Less than two years after obtaining $50 million in a Series A fundraising round, NFT platform Recur revealed this week that it was closing down as another indication of the industry’s crisis. In response to the recent controversy around creator royalties in the cryptocurrency industry, where more platforms are ceasing to enforce them, Rarible also said it would discontinue collecting NFT orders from OpenSea, LooksRare, and X2Y2. Recently, NFT royalties experienced their lowest volume in two years.

However, gaming is one industry that could give NFTs a fresh lease on life, according to Loopify, the alias of Metaverse and NFT outfit Endless Clouds. He stated earlier this month that the market has to change from being dominated by profile images to NFTs that represent in-game commodities like “skins.”

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