OpenSea: Why did its volume drop by over $ 4 billion?

Heavily impacted by the decline in the non-fungible token market, the OpenSea NFT market has seen a sharp decline in sales volume.

Launched four and a half years ago, OpenSea quickly climbed the charts to become the leading NFT market in the world. However, the platform has failed to escape the suffering of the current bear market which is ravaging the entire cryptocurrency market.

After peaking around $ 5 billion in January, OpenSea’s sales dropped to $ 502 million in August, an 89% decline in seven months.

OpenSea monthly sales. Source: Dune Analytics

Data for August 2022 was down 85% from the same month last year ($ 3 billion)and 5% from the $ 529 million recorded in July 2022.

Sales of the best NFT collections plummet in red

The best collections on OpenSea include, but are not limited to: Bored Ape Yacht Club (BAYC), Otherdeed (Otherside), Mutant Ape Yacht Club (MAYC), CryptoPunks and Moonbirds. In the table below, the only NFTs that are not in the top 10 best-selling non-fungible tokens are Ethereum Name Service, ABC, y00ts, DigiDaigaku Genesis, and CLONE X – X TAKASHI MURAKAMI.

collections nft
The 10 best NFT collections by sales. Source: OpenSea

Last month, Bored Apes, which is the top collection on OpenSea, saw its number of unique buyers hit its second low.

Despite an increase in the average selling price from $ 110,000 in June and July to $ 132,598 in August, the total number of transactions remained below 500, which corresponds to a volume of less than $ 60 million for the second consecutive month.

nft
Bored Ape Yacht Club Sales – August 2022. Source: CryptoSlam

CryptoPunks also remains one of the highest-profile NFT collections, but its sales volume plummeted over the course of 2022. After peaking at $ 124 million in January, the collection failed to surpass $ 150 million in monthly sales. this year.

crypto-punk
CryptoPunks Sales – August 2022. Source: CryptoSlam

For its part, the Otherdeed collection of the metaverse Otherside set more records when it launched in May, reaching nearly $ 944 million in sales. In fact, the collection closed its first month with over 20,000 unique buyers and an average selling price of nearly $ 20,000.

In August, four months after its launch, the collection saw its sales volume drop to less than $ 30 million in August, a 97% drop.

other act
Otherdeed Sales — August 2022. Source: CryptoSlam

Over the same period, Moonbirds and Mutant Ape Yacht Club also dropped 96% and 90% from their all-time highs, respectively.

OpenSea still holds the lion’s share

The current bear market, which has affected the entire cryptocurrency market, has not been kind to the non-fungible token industry.

While OpenSea reported $ 502 million in sales in August, global NFT sales fell 7% from $ 682 million in July to approximately $ 634 million.

nft sales
Total NFT Sales – August 2022. Source: CryptoSlam

Despite falling more than 80% from its all-time high in January, OpenSea still tops the chart of the best NFT markets in terms of sales volume.

Last month, NFT platforms reached a combined volume of $ 613 million. This means that with its volume of $ 502 million, OpenSea has carved out an 82% share of the non-fungible token market.

Magic Eden came in second with a volume of nearly $ 66 million. Other competitors such as LooksRare, Solanart, Foundation, and Nifty Gateway reported relatively lower volumes.

market nft
Monthly sales volumes of the best NFT marketplaces. Source: The block

X2Y2 climbs the ranking

Over the past 30 days, X2Y2, an NFT marketplace launched last February, has outperformed OpenSea in terms of volume. The platform has in fact reached a volume of approximately 340 million dollars from 80,000 transactions and 19,000 users.

Sales X2Y2
Sales of X2Y2 in the last 30 days. Source: DappRadar

In the same period, OpenSea generated just $ 334 million from 265,000 users out of approximately 1.6 million transactions.

OpenSea sales
OpenSea sales in the past 30 days. Source: DappRadar

X2Y2 owes its success to the launch of Tokenomics 2.0, an initiative that removed transaction fees from the platform. The goal was to encourage users to list and trade non-fungible tokens, while rewarding the most loyal members of the community.

What future for the non-fungible token market?

Parsa Abbasi, the founder of LivelyVerse, shared his thoughts on the future of the non-fungible token market with us.

“We cannot deny that we are seeing a bear market and that this is affecting the entire cryptocurrency industry. NFTs are also part of this sector. But there are other reasons for this decline. On the one hand, owners accumulate losses rather than profits. Having said that, we must never forget that mass behavior is very common in the financial markets. When stocks, tokens or NFTs start making money for investors, other people invest money hoping to generate income – this is what causes the market to collapse. “

“In my opinion, people should invest their money in valuable resources and achievable projects and make investment decisions based on logic. I believe digital monkeys are not a good choice as assets should be a store of value. As the crisis looms, investors are turning to bonds. The money is therefore not expected to remain in the NFTs. Ultimately, this could be a stress test for non-fungible tokens. Because that’s where we’ll see if they could be a store of value – or not, ”she concluded.

Disclaimer

All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at your own risk.

Leave a Comment