Selloffs plague NFT markets: Are traders losing interest?
- 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
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.
Charts of the day (June 8, 2023):
The past 2 days have had the highest percentage of ETH volume on Blur *ever* where sellers dump into bids.
92% of ETH volume has been sellers dumping into bids.
— NFTstatistics.eth (@punk9059) June 8, 2023
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.
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.
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.
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.