The demand for digital collectibles is dropping on Non-Fungible Token (NFT) exchanges, a trend that may have been exacerbated by the recent flash meltdown in the larger crypto sector.
According to statistics from crypto market analytics company Dune Analytics, transaction volumes on OpenSea have steadily declined since September 3. However, other rival markets, such as Rarible and LarvaLabs, have had a similar growth as OpenSea.
According to the statistics, the total average Ethereum tokens exchanged on September 3 across the five platforms that include Foundation and SuperRare was 56,842.07 ETH. On September 9, this volume fell to 29,371.84 ETH. As gas fees across multiple NFT blockchains skyrocket, collectors’ interest has waned, the drop in trade volumes has successfully demonstrated the change in demand.
The growth indicators for most projects listed on individual markets have also shrunk. For example, the top two projects on OpenSea, CryptoPunks, and Art Blocks Curated, had had their trade volumes drop by 54.85% and 3.23 percent, respectively, as of the time of writing. While Bored Ape Yacht Club diverged from the negative trend with a 53.30 percent increase in trade volume, the NFT marketplace‘s overall outlook is not encouraging.
With Bitcoin (BTC) and hundreds of altcoins still reeling from the effects of the recent price flash crash, the path taken by the NFT markets reveals a strong link between the two offshoots of the underlying blockchain technology. This year, the NFT metaverse has taken a step forward in terms of growth, as collections continue to sell for absurdly high amounts.
The industry’s high demand has put companies like OpenSea under a lot of pressure to hire additional people as new projects and collectors enter the market. However, the current interest decrease is likely to be revived in recent times, as the crypto market’s volatility, which has been its bane throughout the previous collapse, can spark a remarkable recovery.