One of the largest NFT marketplaces, OpenSea, has seen a significant drop in trading volume over the past 24 hours, according to data from DappRadar. The volume has declined by 24.8%, while over the past 30 days, OpenSea’s trading volume has dropped by 30.8%. Additionally, wallets’ activity has also decreased by 15% in the past 24 hours.
Looking at OpenSea’s fees and revenue, it is evident that the NFT market has been experiencing a sharp decline since mid-2022. In March 2022, OpenSea reported a revenue of $61.3 million, but by March 2023, the platform only earned $172,330, representing a massive decline of 99.72% in just one year.
OpenSea’s fees have also dropped from $193.94 million in March 2022 to $1.41 million in March 2023. The sharp decline in OpenSea’s fees and revenue since mid-2022 could be attributed to the collapse of the cryptocurrency market in the summer of 2022.
Several companies have succumbed to the market’s crash, and the situation worsened with the collapse of FTX in November 2022. Moreover, the general interest in NFTs seems to have waned since its explosion in 2021, giving way to new trends in the market.
However, it is also possible that the decrease in OpenSea’s daily trading volume is due to a recent court ruling on an insider trading case. According to Reuters, a former manager at OpenSea was found guilty of fraud and money laundering in connection with NFT insider trading on May 3.
Nathaniel Chastain, the former product manager at OpenSea, will decide which NFTs will be listed on the company’s marketplace. Prosecutors allege that he would purchase these NFTs and sell them off after they were marked up.
The decline in OpenSea’s trading volume is not isolated, as other NFT marketplaces have also experienced similar drops in volume and revenue. The NFT market is still relatively new and rapidly evolving, so it remains to be seen whether these recent declines are temporary or indicative of a long-term trend.
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