Until now, cryptocurrencies in 2022 have mainly been dominated by plummeting prices and bright red days. It is therefore safe to speak of a new crypto winter. This crypto winter also ensures that the non-fungible token (NFT) sector is hit hard. According to data from The Block Crypto trading volume on NFT marketplaces is currently the lowest since the beginning of the year.
NFT trading volume
The total trading volume of NFTs in dedicated marketplaces was just $4 billion in May this year. That may seem like a lot at first glance, but for comparison, the NFT trading volume was $7.18 billion just a month earlier. That means a decrease of no less than 44% in one month.
January was truly a top month for NFT marketplaces. At the time, the trading volume was a whopping $16.7 billion. Since then, however, the total trading volume of NFTs on marketplaces has fallen sharply.
OpenSea remains in the lead
The largest NFT marketplace of the moment remains head and shoulders OpenSea. This marketplace has actually been the most used marketplace since the emergence of the NFT sector last year and therefore the total trading volume is also the highest here.
Only in January of this year was there an exception to this. In that month, OpenSea was briefly knocked off the throne in terms of volume. At the time, LooksRare was briefly the largest NFT marketplace with a trading volume of over $11 billion.
Why is the volume dropping?
The drastic decline in trading volume has of course everything to do with a lack of interest among investors. It is simply a difficult and uncertain period and it seems that investors are more likely to ignore NFTs at such a time.
Incidentally, we see this phenomenon not only with NFTs, but with many cryptos trading volume is lower than what we were used to. There is therefore a real chance that the NFT trading volume will rise again when the market recovers somewhat.
