The marketplace's daily NFT trading volume declined by approximately 99% from its record high of $405.75 million on May 1 to only $5 million on August 28.
OpenSea, one of the largest NFT markets, has seen a massive drop in volumes. The trading volume on the marketplace has plunged by approximately 99% in the past 90 days compared to its previous record-high volumes recorded in May.
According to DappRadar data, daily NFT trading volume on OpenSea reached $405.75 million on May 1, while by August 28, it was only $5 million. The company also recorded 24,020 users on August 28, which is almost a third fewer than the number of users in May.
The decrease in volume is apparently due to a decrease in demand, which in turn led to a decrease in floor prices for even the most famous collections. For instance, the cheapest Bored Ape Yacht Club NFT can now be purchased for 72.5 ETH (about $109,000 at the time of writing).
This is 53% lower than the ETH price recorded on April 30 when the Bored Ape Yacht Club NFT's floor price was 153.7 ETH, according to CoinGecko data. This drop becomes even more significant if we take into account the devaluation of Ethereum itself – on May 1, the price for an NFT of 153.7 ETH was $434,048, so in dollar terms, the price fell by 76%.
Other NFT collections saw a decline too – CryptoPunks, another popular collection of Ethereum-based NFTs is currently down 19% from its July peak.
OpenSea spokesperson, however, noted that DappRadar’s methodology isn't quite correct as the platform compared the site’s all-time highest trading day with one of its lowest, while the marketplace prefers to use ETH volume as the key metric. Still, according to this metric, OpenSea monthly volume dropped by 62% from May to July, and is set to fall further in August, according to crypto-tracking platform Dune Analytics.
The spokesperson added that OpenSea is not worried about the decline in trading volume saying that the marketplace is "playing the long game because [it sees] what’s possible", so OpenSea is "not that concerned about short-term volatility."
"We always expected frothiness, hype, and deflation as the community and use cases evolve, the tech gets more sophisticated, and creators figure out how to build more utility into their projects," they added.