OpenSea: Why is its transaction volume down more than $4 billion?

OpenSea : pourquoi son volume a chuté de plus de 4 milliards de dollars ?

Hit hard by the decline in the non-fungible token market, the NFT OpenSea market saw a sharp drop in sales.

Launched four and a half years ago, OpenSea has rapidly risen to become the world’s leading NFT marketplace. However, the platform has failed to escape the throes of the current bear market that is ravaging the entire crypto market.

After peaking at about $5 billion in January, OpenSea’s sales fell to $502 million in August, an 89% drop in seven months.

OpenSea monthly sales.Source: Dune Analysis

Data for August 2022 is down 85% from a year earlier ($3 billion)and 5% of the $529 million recorded in July 2022.

Sales of the best nft collectibles in the red

Top favorites on OpenSea include, but are not limited to: Bored Ape Yacht Club (BAYC), Otherdeed (Otherside), Mutant Ape Yacht Club (MAYC), CryptoPunks and Moonbirds. In the table below, the only NFTs that did not make the top 10 best-selling non-fungible tokens were Ethereum Name Service, ABC, y00ts, DigiDaigaku Genesis, and CLONE X – X TAKASHI MURAKAMI.

nft collection
Top 10 Best NFT Collections by Sales. Source: OpenSea

Bored Apes, the top collectible on OpenSea, had its second-lowest number of independent buyers last month.

While the average selling price increased from $110,000 in June and July to $132,598 in August, total transaction volume remained below 500, equivalent to less than $60 million for the second month in a row.

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Boring Ape Yacht Club Sale – August 2022. Source: CryptoSlam

CryptoPunks also remain one of the most high-profile NFT collectibles, but their sales plummeted throughout 2022. After peaking at $124 million in January, the collectible has failed to surpass $150 million in monthly sales this year.

Cypherpunk
CryptoPunks Sale – August 2022. Source: CryptoSlam

For its part, Otherside Metaverse’s Otherdeed series set multiple records when it launched in May, with sales of nearly $944 million. In fact, the collection attracted more than 20,000 unique buyers in its first month, with an average selling price of nearly $20,000.

In August, four months after its launch, sales of the collection fell to less than $30 million in August, a 97 percent drop.

other behavior
Otherdeed Sales – August 2022. Source: CryptoSlam

Over the same period, Moonbirds and Mutant Ape Yacht Club are also down 96% and 90%, respectively, from their all-time highs.

OpenSea still holds the largest share

The current bear market hitting the entire crypto market is not kind to the non-fungible token industry.

While OpenSea had sales of $502 million in August, global NFT sales fell 7% to around $634 million from $682 million in July.

nft sales
Total NFT Sales – August 2022. Source: CryptoSlam

Despite a more than 80% drop from its all-time high in January, OpenSea still leads the ranking of the best NFT marketplaces in terms of volume.

Last month, the total transaction volume on the NFT platform reached $613 million. This means that with its $502 million trading volume, OpenSea has captured 82% of the non-fungible token market.

Magic Eden came in second with nearly $66 million in transaction volume. Other competitors such as LooksRare, Solanart, Foundation and Nifty Gateway had relatively low sales.

nft market
Monthly sales of the best NFT marketplaces.Source: The Block

X2Y2 tops the leaderboard

X2Y2, an NFT marketplace launched last February, has surpassed OpenSea in transaction volume over the past 30 days. The platform did achieve around $340 million in volume from 80,000 transactions and 19,000 users.

Sales X2Y2
Sales of X2Y2 in the last 30 days. Source: DappRadar

During the same period, OpenSea generated $334 million in revenue from 265,000 users across roughly 1.6 million transactions.

OpenSea Sales
OpenSea sales for the past 30 days. Source: DappRadar

X2Y2’s success is due to Token Economics 2.0, a move to remove transaction fees from the platform. The goal is to encourage users to list and trade non-fungible tokens while rewarding the most loyal members of the community.

What does the future hold for the non-fungible token market?

LivelyVerse founder Parsa Abbasi shares with us his vision for the future of the non-fungible token market.

“We cannot deny that we are witnessing a bear market that is affecting the entire crypto industry. NFTs are also part of the space. But there are other reasons for this decline. On the one hand, owners accumulate losses rather than profits. Having said that, we It must not be forgotten that in the financial markets, mass behavior is very common. When stocks, tokens or NFTs start to make money for investors, others invest their money in hopes of making a profit — that’s what causes the market to crash.”

“In my opinion, people should invest their money in valuable assets and viable projects and make investment decisions based on logic. I don’t think digital monkeys are a good choice because an asset should be a value Means of storage. Investors turn to bonds as the crisis approaches. So the money is not expected to stay in NFTs. Ultimately, this could be a stress test for non-fungible tokens. Because that’s where we’ll see if they A place that can be a store of value – or not,” he concluded.

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