NFT Trading Volume Is Reportedly Way, Way Down, Plunging by 97% Since January
After experiencing record highs in the market last January 2022, making an estimated $17 billion (around P995 billion), non-fungible token (NFT) trading volume has plummeted. It has now gotten to a point where its down by a whopping 97 percent, according to Dune Analytics.
In September, the market only made $466 million. The telling part about all this, however, is the fact that NFT adoption is still relatively high. During the same span, wallets owning NFTs were said to have increased by roughly 2.8 million users. But they aren't buying and selling as much anymore. Weekly trading volume was at an all-time high of $146.3 billion (approximately P8,000,000,000,000)
in April earlier this year.
Analysts point to the start of the current crypto bear market for the decline in NFT trading volume. It's a phenomenon that has made people more hesitant about owning their assets. Cryptocurrency, after all, has long been known as a volatile market. It doesn't help that the world is heading toward a looming recession, too. Crypto and NFTs rely on each other to work. Thus, the collapse.
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People have also veered away from transacting in marketplaces like OpenSea, which used to be one of the most famous marketplaces around. Scams have been rampant in the market, as well. Ridiculous prices and ethically questionable practices have also contributed to the skepticism around NFTs.
The price of NFTs overall has plunged, too. It's part of the drop in Ether's value, which is still the most common cryptocurrency used. An NFT only gets about an average of $285 (roughly P17,000) per sale today, as compared to the $2,000 (about P117,000) it would have made in January.
In the Philippines' case, we still rank first among 20 countries in terms of NFT ownership, according to a report by Finder.
But the global hype, unfortunately, has died down. Traders are more bullish than ever. We're just going to have to wait and see where the market goes from here.