The world’s most recognized NFT auction platform, OpenSea, recently announced its lowest daily volume rank in 2022. According to reports, the website dedicated to trading non-fungible tokens lost over 80 percent in profits within the year’s first quarter.
The NFT market is affected by the downward trend that the crypto industry has been experiencing in recent months. Ethereum, the second-largest market cap cryptocurrency and the basis for NFT trading, has lost around 60 percent of its price after reporting an ATH of $4,878 for November 2021. Today the token is trading below the $2,000.
OpenSea falls apart with the bearish streak in the crypto market
OpenSea, which has been ranked as the best NFT platform since 2017 when it was created, reports an unfavorable daily volume. According to the web platform director, in the second week of May 2022, only about 24,000 digital pieces were sold, valuating approximately $205,000,000. This is an unfavorable figure compared to the $1,900,000,000 in sales reported by the NFT company for August last year.
But OpenSea’s sales deficit is also caused by losing confidence among the holders of the virtual pieces. It is reported that many phishing-related issues have occurred, leaving NFT market enthusiasts without their unique pieces. In the first half of the year, around 50 percent of NFT holders lost their tokens mysteriously, causing the community to be discouraged from investing their money in the tokens.
NFT market and cryptocurrencies have reached a stable stage, according to experts
Although OpenSea and the entire crypto industry report they are going through a losing season, crypto experts believe that everything is stabilizing. Active crypto experts think NFTs and cryptocurrencies are slowing down after 2021 was a near-perfect year for sales.
These crypto professionals from NonFungible magazine clarified that losing speed in the market was to be expected, so in a certain way, they predicted that OpenSea would go through a phase of loss in valuation. However, they do not rule out that the NFT market will raise its value, but they are not certain that it will happen this year.
While the Open Sea NFT market is going through a bad time, other great industry exponents announce new non-fungible collections.
The NFT company will likely announce new virtual auctions that could increase its sales. The year’s second quarter is expected to be favorable for the NFT market.
