The latest DappRadar report reveals the ongoing struggles in the NFT market. Unfortunately, the NFT market has not yet recovered to its previous peak following the crash. This is evident across various metrics, and it paints a concerning picture. Let’s take a closer look.
- NFT trading volume dropped 38% from Q1 to Q2, indicating a significant crash in market activity.
- The number of unique NFT buyers and sellers reached unprecedented lows, with a substantial decline compared to previous periods.
- Ethereum remains the dominant chain for NFTs, and the number of unique Ethereum wallets involved in NFT trading also showed a decline.
NFT Market Crash: Trading Volume Plummets by 38% and Sales Decline by 9.2%
The trading volume of NFTs experienced a significant 38% drop from Q1 to Q2. NFT sales also saw a decrease of 9.2%. Moreover, the number of unique NFT buyers and sellers has hit unprecedented lows, as reported by Dune. Further, in a recent week there were only 366 buyers and 441 sellers compared to 31,353 sellers and 28,756 buyers in the final week of June 2022. So, this is a substantial and alarming crash in the NFT market.
The crash is certainly not new news. The decline in traders occurred rapidly at the start of 2023. At that time, numbers plummeted by over half within a week. By the second week of January, there were 2,385 sellers and 2,388 buyers. Similar trends can be observed in the number of unique Ethereum wallets involved in NFT trading.
That’s not where the NFT market crash ends. Even relatively new NFT marketplaces like Blur experienced a slowdown this quarter, with a 34% decrease in trading volume. Additionally, OpenSea, which long held dominance in the market, suffered an even more significant blow, with trading volume plummeting by over 56%. However, it is crucial to note that the NFT industry’s trajectory rarely follows a straightforward “up” or “down” pattern.
Lastly, on a positive note, the DappRadar report identified Bitcoin Ordinals as one of the few winners in the quarter. Trading volume for “Bitcoin NFTs” witnessed a staggering increase from $7.18 million in Q1 to an incredible $210.7 million in Q2.