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Selloffs plague NFT markets: Are traders losing interest?

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Recent data suggests a potential downturn in the NFT market, with sellers dominating trading and declining volumes across exchanges, raising concerns about waning interest and activity.

Selloffs plague NFT markets: Are traders losing interest?

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  • Sellers dominated NFT trading as volume decreased across exchanges.
  • Polygon, Solana, and Ethereum-based projects witness decreased activity.

The Non-fungible Token [NFT] market experienced a surge in interest as collaborations and collections like Milady [LADYS] captured the attention of traders. However, recent data suggested that the excitement may be fading.

NFTs on sale

According to NFTstatistics.eth, the past few days have witnessed the highest percentage of Ethereum [ETH] volume on Blur [BLUR], with sellers overwhelmingly dumping into bids.

This trend, where 92% of ETH’s volume has consisted of dumping into bids, is a negative indicator for the NFT market. It implies that sellers are outweighing buyers, potentially leading to a decrease in demand and market activity.

Furthermore, Dune Analytics’ data revealed a significant decline in trading volume across exchanges in the past few days. Alongside the declining volume, the number of traders taking part in the market fell as well.

OpenSea remained dominant in terms of NFT trades at press time, capturing 47% of the market share. However, in terms of volume, Blur overtook its peers, holding 5.2% of the market share.

Source: Dune Analytics

Notably, the interest in NFTs from prominent protocols such as Polygon [MATIC] and Solana [SOL] declined.

Dapp Radar’s data showed that popular NFTs on the Polygon network, such as y00ts and the Trump Card Collection, witnessed a decrease in the number of unique active wallets. Consequently, the volume of transfers for these NFTs also decreased.

Similarly, interest in Solana’s most sought-after NFTs waned at press time, as indicated by Solanafloor’s Blue Chip Index.

Source: Solanafloor

Even Yuga Labs’ highly popular NFT collection, the Mutant Ape Yacht Club [MAYC], saw a drop. Whales holding MAYC have sold an alarming 160 NFTs over the past few days.

This significant selling pressure could further drive down the floor prices of these NFT collections.

Source: Santiment

State of Ethereum

Besides these concerns, there has been a substantial decline in the overall number of NFT trades occurring on the Ethereum network. This has resulted in a significant decrease in gas usage, indicating reduced participation and interest.

The combination of these factors raises questions about the sustainability of and continued interest in the NFT market. It suggests that the initial hype and excitement surrounding NFTs may be fading, leading to a potential slowdown in trading activity and market participation.

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Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
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