Along with the decline in the price of Ethereum, the transaction volume of Non-Fungible Token (NFT) assets on the widely used marketplace OpenSea has also slowed down significantly.
The reason for this is that the daily trading volume of Ethereum blockchain-based NFTs on OpenSea apparently dropped by 99 percent as compared to May 1, 2022. This occurred after the volume had reached a record high. At the very least, this is what the most recent data from the analytics firm DappRadar suggests.
On the other hand, OpenSea set a new record for largest day trading volume on May 1 with 405.75 million dollars in US currency.
On the other hand, on the 28th of August, the daily volume of NFT transactions conducted on OpenSea had decreased to a range of only $5 million US.
When compared to May 1, trade volume on August 28 was almost 99.99 percent lower after being computed.
Popular NFT floor prices decline
This enormous drop in the daily transaction volume of NFT on OpenSea was followed by a significant drop in both the number of users and the price of NFT on OpenSea. Both of these factors saw a significant fall.
According to DappRadar, there were 24,020 users as of August 28, 2022. This information was gleaned from the website. This amount is one-third lower than the number of people that used the NFT on May 1st.
According to recent reports, the floor prices of popular non-fungible tokens (NFTs) on OpenSea, such as Bored Ape Yacht Club and CryptoPunks, have also decreased. According to the official website for OpenSea, the floor price itself refers to the lowest price for an item in the collection, and OpenSea updates this price in real time.
The floor price for the NFT Bored Ape Yacht Club dropped by around 53 percent between May 1 and August 28, going from approximately 153.7 ETH to approximately 72.5 ETH.
The floor price of NFT CryptoPunks has dropped by about 20 percent from its all-time high of 83.72 ETH in July 2022, which places it in a position that is not quite as precarious as that of Bored Ape Yacht Club.
This decrease in transaction volume, number of users, and NFT pricing on OpenSea demonstrates that the value and interest in NFT blockchain-based NFTs has dropped over the past few months.
The effect of the precipitous drop in the price of Ethereum
On OpenSea, a drop in trading volume, an increase in the number of users, and a decrease in the price of the NFT floor have all been attributed, according to consensus, to the value of the Ethereum crypto asset, which has been exhibiting a “bearish” trend, also known as a downturn, in recent times.
The monitoring done by KompasTekno on the CoinDesk website revealed that as of Tuesday (30/8/2022) at 15.25 WIB, the price of Ethereum per unit has increased to 1,596 dollars in the United States. At the beginning of May 2022, the price of Ethereum was exchanged at about double its current level, or in the neighborhood of three thousand dollars US.
If we go even farther back in time, we can see that this downward trend in the value of Ethereum has been occurring since November 2021, when the price of Ethereum reached a record high of somewhere between 4,700 and 5,000 US dollars per chip.
Since November 2021, the price of Ethereum has had a tendency to remain in a trading range that is lower than US$4,000, and it even reached a range that is lower than US$1,500 in August.
This tendency of weakening Ethereum happens in tandem with the weakening of other cryptocurrencies, most notably Bitcoin due to Bitcoin’s status as the cryptocurrency with the greatest market capitalization.