OpenSea: Why Volume Dropped Over $4 Billion?

The NFT OpenSea market was hit hard by the decline in the non-fungible token market and saw a sharp drop in sales volume.

Launched four and a half years ago, OpenSea quickly climbed through the ranks to become the world’s leading NFT marketplace. Nevertheless, the platform has failed to escape the grip of the current bear market that is plaguing the entire crypto market.

After peaking at about $5 billion in January, OpenSea sales fell to $502 million in August, down 89% in seven months.

Monthly sale of OpenSea. Source: Dune Analytics

Figures for August 2022 were 85% lower than the same month last year ($3 billion)and 5% of the $529 million recorded in July 2022.

Sales of the best nft collections plunge into the red

Top 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.

nft collections
Top 10 Best NFT Collections by Sale. Source: OpenSea

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

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

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

CryptoPunks also remains one of the most talked-about NFT collections, but sales volume plummeted in 2022. After peaking at $124 million in January, the collection has not surpassed monthly sales of $150 million this year.

crypto punks
CryptoPunks Sale – August 2022. Source: CryptoSlam

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

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

other act
Otherdeed Sales – August 2022. Source: CryptoSlam

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

OpenSea still has the lion’s share

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

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

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

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

Last month, NFT platforms hit a combined volume of $613 million. This means that with a volume of $502 million, OpenSea has captured 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 saw relatively lower volumes.

nft marketplace
Monthly sales volumes from the best NFT marketplaces. Source: The Block

X2Y2 climbs the leaderboard

In the past 30 days, X2Y2, an NFT marketplace launched last February, has overtaken OpenSea in terms of volume. Indeed, the platform has reached a volume of about $340 million from 80,000 transactions and 19,000 users.

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

Over the same period, OpenSea generated only $334 million from 265,000 users on approximately 1.6 million transactions.

OpenSea Sales
OpenSea sales in the last 30 days. Source: DappRadar

X2Y2 owes its success to the launch of Tokenomics 2.0, an initiative that has removed transaction fees from the platform. The goal was to encourage users to list and trade non-replaceable 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 witnessing a bear market that is affecting the entire crypto sector. NFTs are also part of this sector. But there are other reasons for this decline. On the one hand, owners accumulate losses rather than gains. That said, we should never forget that massive behavior in the financial markets is very common. When stocks, tokens or NFTs start making money for investors, other people invest money in the hope of generating profits – this is what crashes the market.

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

Disclaimer

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

Leave a Comment