The Significant Decline in NFT Marketplace Activity Shouldn’t Surprise Anyone

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Recent data suggest that major non-fungible token (NFT) marketplaces, including OpenSea and Blur, are witnessing a considerable decline in daily users and sales. This article delves into the latest figures and investigates potential reasons for this downward trend, offering a comprehensive analysis of the current state of the NFT market.

The Declining Trend Across Top NFT Marketplaces

Over the past week, there has been a significant drop in daily users and sales across prominent NFT marketplaces, with figures reaching levels not observed since July 2021

According to a Dune dashboard by NFT researcher SeaLaunch, unique user numbers across top platforms like Blur, OpenSea, and LooksRare have experienced a steady decrease. On April 19, unique user numbers dipped to 7,805, the lowest since July 31, 2021, when the count stood at 7,455.

Simultaneously, sales across NFT platforms have also dwindled, with 16,149 sales recorded on April 19. The last time the sales figures were this low was on November 9, 2021, with 12,910 sales.

OpenSea and Blur: A Closer Look

OpenSea and Blur, leading NFT marketplaces, have observed marked declines in unique users and sales. Data from another SeaLaunch dashboard reveals that Blur, a platform catering to professional users, saw its lowest daily sales count in 90 days, with only 5,688 sales on April 19. Furthermore, Blur’s daily unique users fell to 1,777 on the same day, the lowest figure in the past 90 days.

As for OpenSea, data from a Dune dashboard compiled by researcher Hildobby indicates that the number of daily traders plummeted over the last week, reaching 10,640 on April 18. OpenSea’s daily trader count has not dipped below 10,000 since July 2021.

Potential Causes for the NFT Marketplace Slump

The reasons behind the decrease in daily users and sales across NFT marketplaces remain unclear. However, SeaLaunch suggests that a “macro scenario” affecting trading patterns could be the culprit, impacting both professional and casual users. Possible causes include high gas prices and tax season liquidity issues.

Other contributing factors might include high-volume Blur airdrop farmers reducing trading volumes and liquidity and the recent meme coin trading frenzy with coins like PEPE.

Hildobby shares similar views, stating, “I think it’s a combination of factors, but the biggest factors [in my opinion] are that not much interesting has been happening in NFTs lately, and rapidly rising gas prices aren’t helping.”

Despite the concerning trends, not all metrics appear pessimistic. Over the last 30 days, trading volume in ether (ETH) across NFT marketplaces has remained relatively stable, per Dune’s data. 

Additionally, SeaLaunch highlights that Uniswap has experienced a growth in daily active users over the past two weeks, compared to the declining figures across OpenSea and Blur.

Conclusion: A Critical Moment for the NFT Market

The recent dip in daily users and sales across top NFT marketplaces, including OpenSea and Blur, raises concerns about the future of the NFT market. While a combination of factors may contribute to this decline, it remains essential for industry players to address these challenges and adapt to the changing landscape.

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