NFT Market Blues: Will the Beat Pick Up?
The NFT market has been facing a challenging period, as indicated by the latest report from DappRadar.
The decline in NFT trading volume has been significant, with a 29% drop to $632 million in July, and the total number of NFT sales fell by 23% to 3.7 million. This comes after a previous report showing a 38% decrease in NFT trading volume in the year’s second quarter.
The market has experienced a downward trend for several months. In June, there was a 44% decrease in daily unique active wallets in the NFT sector, and in May, there was a 44% drop in NFT trading volume.
DappRadar’s recent data revealed a 19% decrease in dUAW to 70,338 this month, comprising only 4% of the industry’s overall activity.
Notably, the DeFi sector has also seen a slight decrease in the total value locked (TVL) by 2.27%, currently standing at $75.91 billion. However, this decline in DeFi doesn’t offer any relief to the NFT traders.
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The market downturn since the second half of 2022 is partly responsible for the current troubles in the NFT market. This is mainly due to its close connection to Bitcoin (BTC) and Ethereum (ETH) price fluctuations.
Additionally, wild hype and speculation around NFTs have resulted in numerous scams and fraudulent activities, which have further contributed to the cooling down of the NFT market in 2023. As a result, NFT trading volume has dropped significantly by more than 90% since its peak in January 2022, and the average price of an NFT has fallen by approximately 70%.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
