The total trading volume of non-fungible tokens (NFTs) on the Solana (SOL) network has plunged significantly from its peak in March of last year to the point that it’s now down nearly 90%.
According to data from cryptocurrency terminal Artemis, $13.3 million worth of NFTs changed hands on the Solana network on March 7, while volumes are currently struggling to reach $1 million a day. Using a 7-day simple moving average on these volumes, the data shows a daily volume of $1.3 million late last week.
The NFT trading craze has been dropping over time amid oversaturation, as the NFT boom saw an explosion of new artists, creators, and projects flood the space and create a plethora of collections, leading to significant dilution amid the growing competition to offer users value.
That dilution came as the broader economic climate became harsher amid growing interest rates meant to rein in inflation. While over the past year, risk assets saw significant performanc,e the cryptocurrency market saw a major bull run that saw Bitcoin (BTC) top the $100,000 mark for the first time ever before enduring a correction, the NFT space lacked major advances.
The market’s performance was also affected by the U.S. Securities and Exchange Commission (SEC) issuing a Wells notice against leading non-fungible token marketplaces in September 2024. A Wells notice
A Wells notice is an official notification from the SEC that signals potential enforcement action for securities violations, allowing the recipient to respond before making a final decision.
NFT Sales Topped $8.8 Billion Last Year
Despite the market’s significant slowdown, non-fungible token sales last year still recorded a volume of $8.83 billion, exceeding the total sales volume 2023 by over $100 million as the space endures its prolonged bear market.
NFT sales as a whole remain significantly below those seen during the space’s boom in 2021 and 2022, where sales hit a whopping $15.7 billion and $23.7 billion, respectively, before the space entered its multi-year bear market.
The regulatory pressure and market slowdown have been so striking that cryptocurrency exchange Kraken announced late last year it will shut down its NFT marketplace in late February as it reallocates resources toward new projects.
Disclaimer
This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
