After several weeks of consecutive gains, NFT markets face a sharp slump. In fact, the market is down around 20% this week compared to the previous week. According to seven-day statistics, NFT sales totaled $153 million last week, with $84 million in sales coming from Ethereum.
However, according to data from Dune, daily trades have been steadily falling for the past three months. On March 13, approximately 44,000 NFT trades took place, but on June 12, that number was closer to 25,000. Here’s a quick rundown on the market as it is.
- NFT markets have experienced a significant downturn, with a 20% drop in sales compared to the previous week.
- Despite the decline, there has been a 27% increase in active wallets associated with NFT activities, driven by the Miladys NFT collection and Elon Musk’s support.
- Blur, LooksRare, and Kraken are taking steps to stimulate the NFT market through enhanced incentives and the launch of their own platforms, despite the overall decline in trading.
NFT Markets Facing Downturn: What’s Going On?
A recent DappRadar report suggests that NFT sales in May might have fallen below $1 billion for the first time this year. Despite this decline, the report’s analysis reveals a 27% increase in active wallets associated with NFT activities in May. This growth can be attributed to the Miladys NFT collection, which received a significant boost from Elon Musk.
To combat the declining trading activity, NFT marketplaces are enhancing incentives for traders. Blur, for example, announced updates to its incentive system on June 7. With this new update it rewards bidders who take real risks with the highest number of Bidding Points. LooksRare, once a high-volume marketplace, has experienced a decline since May 2022, but it aims to reclaim its former glory by launching its own rewards system on June 1.
Not deterred by the low trading numbers, Kraken recently launched its own NFT trading platform, further crowding the market. As of mid-May, Blur remains the largest NFT marketplace with a 62% market share, while OpenSea trails behind at 26%. However, OpenSea boasts the largest number of traders, with 104,882 active users compared to Blur’s 12,747.
These slowdowns may also be the result of recent hacks to huge NFT influencers and crypto wars surrounding regulations. While the NFT market has seen a decline in trades and sales, the growth of active wallets and the introduction of new incentives indicate ongoing developments and efforts to revitalize the market.