NFTs have gotten really popular lately but as the markets have seen a change in momentum, we have seen a downtrend in the same as well. In August, Bitcoin and other tokens were rising at a phenomenal rate and this lead to an NFT volume surge. But recently, as the markets dumped again we saw an NFT volume decline of 50% in September as compared to August. OpenSea published data that they saw a $4B trading volume in NFTs during August and in the first week of September, things have turned out differently.
NFTs have seen a change in momentum as well
NFTs are very dependent on market sentiment. If crypto is doing good, we can expect NFTs to perform well and vice versa. There is still a lot of trading going on in NFTs but it is important to note that the volume continues to decline. The current trading volume stands at just $792.3 million which is down from $1.6 billion. Do note that this number doesn’t signify the entire volume of the NFT market. Other platforms like Axie Infinity and CryptoPunks have also seen a decline but still, have a volume of well over $100 million in September.
Still in the green (Long term growth)
While the short term numbers seem to have taken a hit, we should note that the growth is still high in the long term. In 2021, we have already seen a huge hype in the NFT market and the trading of expensive NFTs are becoming more and more normal every day. OpenSea especially has seen a 3x growth in the NFT volume if you consider a wider timeframe of a year. They are growing at such a fast rate that the company is also planning to expand its employees and are looking for engineers. They have even announced a gift of 1 ETH for anyone who recommends them a candidate and they get selected.
What are your thoughts on the NFT volume decline of 50% in September and was it expected? Do you think we can see a recovery soon? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.