NFT Volume Falls $12 Billion to 2022 Lows

NFT marketplaces were hard hit by the May crypto market crash, which resulted in billions of dollars being wiped off the sales volume of digital collectibles.

  • Because of the crypto market downturn, NFT marketplace volume continues to fall.
  • In the last three months, monthly market volume has fallen below $10 billion.
  • Total monthly volume fell to around $4 billion.

NFT marketplaces are still attempting to recover from the drop in investor interest in digital collections.

According to USSA GAG research, the total volume of NFT marketplaces in May was around $4 billion. Although this figure appears to be impressive, monthly volumes from April 2022 were in the $7.18 billion range.

Source: NFT Marketplace Monthly Volume by the Block Crypto
Source: NFT Marketplace Monthly Volume by the Block Crypto

With approximately $2.6 billion, OpenSea contributed the majority of the volume. Magic Eden, LooksRare, Solanart, Art Blocks, SuperRare, MakersPlace, Nifty Gateway, Foundation, and Async Art were among the other marketplaces that made significant contributions.

NFT marketplaces are digital platforms that allow users to buy and sell non-fungible tokens. The platforms enable digital collectibles enthusiasts to store and display their NFTs for fiat or cryptocurrency.

Total sales volume in January 2022 was approximately $16.57 billion, with LooksRare leading the way with $11.1 billion for the month. May's volume was $12.57 billion less than January's, representing a 75% drop in just four months.

Why is the NFT market volume declining?

The waning volume of NFT marketplaces can be attributed to a decrease in investor interest.

In May, CryptoPunks had an average sale value of $136,800 (10-month low), while Axie Infinity had an average sale value of $17.57 (5-month low). The average sales values for Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) were $218,740 (6-month low) and $57,580 (5-month low), respectively.

The volume of OpenSea in May was $890 million higher than in April ($3.49 billion), $980 million higher than in February ($3.58 billion), and $2.37 billion higher than in January 2022.

Source: OpenSea Monthly Volume Chart by Dune Analytics
Source: OpenSea Monthly Volume Chart by Dune Analytics

LooksRare's May volume of $1.06 billion was 67% less than April's $3.31 billion, 64% less than March's $3.02 billion, 85% less than February's $7.41 billion, and 90% less than January 2022's $11.1 billion.

Magic Eden is one of the largest NFT marketplaces, with a monthly revenue of around $292.1 million in May. This represented a 23% decrease from January's volume of approximately $380.87 million.

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

Follow us on Google News

Filed under