NFT trading volumes down 99% from May peak

Since many users consider NFTs to be an investment, this asset class fell out of favour following the recent significant declines in the crypto market. Trading volumes are now 99% down from their all-time highs, while daily sales have dropped by 85%.

Image source: nonfungible.com

In the autumn of 2021, some days saw over 200,000 NFTs change hands. Now, this figure has dropped to 30,000. The most sales per day were recorded on 1 May, with a total value of $812 million. Now, daily turnover rarely exceeds $10 million.

When it comes to trading platforms, OpenSea still holds the top spot with a total turnover of $32 billion. Out of those $812 million traded on 1 May, the platform processed $406 million. All of OpenSea's other indicators align with the general market trend. In monthly terms, the turnover for the year decreased by 90%.

Image source: dune.com

Out of all blockchains, Ethereum is still the most used, with $29 billion in sales or 74% of total volumes. The decline in the NFT market caused the network commission to drop to its November 2020 level of around $1.50 per transaction on average. Of the top 30 NFT collections, 27 are based on Ethereum..

Image source: StormGain.com

The NFT collection top spot is still occupied by the Axie monsters of the eponymous play-to-earn game, while second and third place are shared by CryptoPanks and the Bored Apes (BAYC).

Image source: cryptoslam.io

Collection prices have also come under pressure. The BAYC ape has dropped 55% to 70 ETH over just four months. However, for patient investors, current trends are of no serious concern. For example, ape No. 5383, valued at just $242,000 (95 ETH) a year ago, was sold for $1.5 million (777 ETH) on 17 August.

Image source: cryptoslam.io

But what do you think: can NFT collections really be considered an investment vehicle? Share your opinion in the comments!

StormGain Analytics Team
(cryptocurrency trading, exchange and storage platform)