Data provided by Dune Analytics stated that the weekly trading volume of non-fungible tokens (NFTs) across the blockchain sector has plunged to $114.4 million, as reported by Cointelegraph.
According to Cointelegraph, the number represents a fall of 98% from the $6.2 billion witnessed at the end of January. Weekly NFT trading volume reached an all-time high of $146.3 billion in early April, before falling in May post starting of an ongoing cryptocurrency bear market. However, total number of wallets containing atleast one NFT has increased to 6.14 million, compared to 3.36 million at the end of January. With regard to NFT marketplaces, there happened a change from the beginning of the year, for which marketplace LooksRare was responsible for majority of the dollar trading volume, which has since changed to OpenSea.
On the basis of information by Cointelegraph, the price of NFTs has also fallen as part of the broader plunge in the price of Ether (ETH), the cryptocurrency used to buy and sell digital collectibles. Currently, market behaviour is showing that an NFT has a sale value of $285 at an average, in comparison to $2,000 in early Januray. Tony Lig, founder, NFTGo, stated that innovation is expected to drive NFT adoption despite implications of the market downturn. Recently, Austria-based post offices made experimentations with NFT stamps while MasterCard unveiled NFT-customised debit cards.
Moreover, Cointelegraph noted that Luxury jeweler Tiffany and Co has also launched a customised pendant experience for CryptoPunk NFT holders. However, the NFT market continues to worsen due to the average NFT weekly trading volume falling by about 30%, in comparison to its value in August.
Going by Cointelegraph’s official website, founded in 2013, it is an independent digital media resource covering news on blockchain technology, cryptocurrency assets, and emerging financial technology (fintech) trends.
(With insights from Cointelegraph)