Crypto News– Based on data from Dune Analytics, the NFT sector is currently undergoing a significant downturn. The network-wide index for NFT trading volume has plummeted to $73.2 million over the past week, marking the lowest point observed in a span of two years. Notably, the majority of this weekly volume, a staggering 65.1%, is being driven by Blur, an NFT marketplace that operates without fees. In contrast, Opensea’s share stands at 23.7%.
Last Week’s NFT Trading Volume Hits a Two-Year Low at $73.2 Million
Adding to the growing apprehension, the count of individuals engaged in NFT transactions across the entire network has dwindled to a two-year nadir of approximately 50,000 users during recent weeks. The NFT arena has been grappling with a prolonged period of stagnation. When juxtaposed with its prime, the weekly trading volume that once soared to heights of up to $1.8 billion back in 2021 now seems like a distant memory.
The trajectory of July 2023 unveiled a series of highly sought-after NFT collections experiencing a notable drop in their price floors. This downward spiral encompassed revered blue-chip projects such as CryptoPunks, Bored Ape Yacht Club, Mutant Apes, and Azukis, which collectively plummeted by a stark 62% over the course of the month.
This evident breach within the market signifies a growing reluctance among investors to embrace risk and a waning faith in the NFT domain. As a natural response, investors might proceed with increased caution and hesitancy toward venturing into riskier ventures. This shift could drive gravitation towards safer assets or even result in an overall reduction in active participation across the market.
Moreover, this decline might be further exacerbated by forthcoming regulatory challenges. Just yesterday, the SEC, an influential regulatory body known for its stringent stance on the cryptocurrency market, initiated its first action against the NFT realm. The regulatory body has charged Impact Theory, an entertainment company based in Los Angeles, with unauthorized development and deployment of NFTs, thereby constituting the SEC‘s maiden enforcement action against the NFT sphere.
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