The Volume Of NFT Trading Fell By 64% In The Second Quarter Of 2022
The fall that the crypto market suffered in the second quarter appears to have overshadowed the non-fungible tokens, mostly known as NFTs. The data shows that interest in digital holdings, or NFTs, declined in the second quarter of this year, compared to the first and the same period a year earlier.
According to data from The Block Research, the total transaction volume of NFTs was $12.22 billion in the second quarter of 2022. In the first quarter, the figure was $33.88 billion, which translates to a 63.93 percent decrease.
This year has been a tough year for the digital asset markets in general. Compared to other sectors, it is the decline in the NFT segment in the second quarter that generates the most concern. The cryptocurrency and NFT markets suffered some setbacks due to a loss of investor interest, market trends, etc. The performance of both markets was affected by the strong pressure of macroeconomic trends and the consequences of the Terra disaster.
The second quarter saw several highlights, but the most notable one: the top 20 cryptocurrencies based on market capitalization saw a drop in value of at least 30 percent. Total Defi Closed Value (TVL) decreased by 68.13% or $155.79 billion in the second quarter of 2022, and decentralized exchange (DEX) volumes decreased by 38.6% compared to the first quarter.
In the second quarter, June saw the biggest drop in NFT trading volume, seeing deals of just over $1 billion. These data show an alarming decrease in NFTs. June had the lowest trading volume since July 2021.
The Volume Of NFT Trading Fell By 64%
The OpeanSea NFT platform accounted for most of the trading volume recorded in the second quarter. It represents $6,790 million of the total trading volume recorded in the second quarter, which is 55.54% of the total observed transaction volume. LooksRare and Magic Eden NFT followed the markets in second and third places with $4.58 billion, or 37.52 percent, and $707 million, or 5.79 percent, respectively. OpenSea and LookRare together accounted for about 93 percent of trading volume during the second quarter of 2022.
In contrast to June, April accounted for most of the transaction volume in the quarter. April accounted for $7.8 billion, or 59 percent of the quarter’s trading volume. During the first quarter of the year, a total turnover of $46,100 million was recorded. Compared to the first quarter of 2021, which saw a trading volume of $953 million, NFT performed well over the year with a trading volume exceeding 4,700%. Compared to the second half of 2021, in which the trading volume amounted to $14.91 billion, the trading volume in the first half of 2022 increased by more than 200 percent.
Although the market has seen some hiccups, Q1 2022 remains the best performing quarter for NFTs with a trading volume of $33.88 billion. “Total trading volume and sales volume have grown 533% and 59%, respectively, since the second quarter of 2021. Although OpenSea is the leading NFT trading platform, its share has declined with the emergence of markets such as LooksRare, x2y2, and Solana’s Magic Eden.”, says a report from DappRadar.
The decline in trading can be attributed to the declining market capitalization of cryptocurrencies and increased competition in the NFT trading scene. However, market volumes measured in US dollars have fallen by nearly 70% since May. ETH volume is down 55% over the same time period,” added DappRadar.
DappRadar also saw that the NFT market was reacting uniquely to the downside, which indicates that the market capitalization of NFT in terms of Ethereum has been steadily increasing. “It went from 3 million ETH in October to its peak in April, reaching 6 million ETH. Currently, the market capitalization is over 5 million ETH, down 8% from April, but 20% more than in May. However, The price of Ethereum has fallen by 68 percent since October.
The trading volume of the ETH-based Metaverse NFT group is up by 101%, while the Polygon group is unfortunately down by 26%. Overall, it recorded an increase of 96 percent. Over the year, the stats look even more impressive, with Ethereum-based clusters growing by 2,093%, while Polygon is up 456%, with an overall increase of 1,999%.
Blockchain games have been somewhat turbulent, but game-based NFTs cannot say the same. Volume is down 82% overall, with most of the chain facing a pullback, with the worst being 84% on Ronin and 88% on Ethereum. The drop in the Ronin series was due to the hack that brought in more than $600 million.
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