Trading Volume On OpenSea Falls By 99% Over The Past Four Months

Ayush Pande
30.08.2022
A spokesperson for OpenSea claims, “We’re playing the long game because we see what’s possible, so we’re not that concerned about short-term volatility.”

OpenSea saw a drastic reduction in transactions as its trading volume dropped by 99% within four months of hitting this year’s highest number of transactions in the month of May.

Significant Decline In Trading Volume and Active Users Due To “Crypto Winter”

Data from DappRadar revealed OpenSea recorded just over $5M in NFT sales in August, compared to $407M worth of transactions observed at the beginning of May. A drop in active users also accompanied the decline in trading volume, with only one-third of the users active on OpenSea following the onset of the Crypto Winter.

The massive decline in OpenSea’s trading volume can be attributed to a stark reduction in NFT floor prices, with popular NFT collections such as BAYC witnessing a 53% drop in its floor price since this year’s high in April.

OpenSea Disagrees With DappRadar’s Statistics

A spokesperson for the platform stated that OpenSea disagrees with DappRadar’s statistics, citing that the 99% decline in trading volume is apparent only while comparing the platform’s all-time high metrics with its all-time lows. 

Instead, OpenSea prefers to utilize ETH volume to gauge the sales volume as it does not include the drop in the value of Ethereum when comparing the transaction volume. 

Lastly, the spokesperson reassured the community that the platform has anticipated some turmoil in the NFT market and added:

“We always expected frothiness, hype, and deflation as the community and use cases evolve, the tech gets more sophisticated, and creators figure out how to build more utility into their projects.”

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