OpenSea, the leading marketplace for Ethereum-based NFTs, has witnessed a dramatic decline in trading volume, reminiscent of early 2018, according to a recent Dune’s Analytics report. Despite this slump, a few top collections have defied the trend, while the platform grapples with policy changes and a recent high-profile insider trading case.
In August, OpenSea’s monthly trading volume on the Ethereum network plummeted to a meager 60,200 ETH, a level not seen since June 2018. This represents a stark contrast to its peak in January 2022 when the platform traded a staggering 1.6 million ETH, equivalent to approximately $4.87 billion. The decline is profound, with the current volume only crossing the 170 ETH mark, amounting to $289,000 as of September 1, 2023.
The platform’s sales figures have mirrored this downward trajectory, with just 244,907 NFTs changing hands in August, compared to over 1.7 million sales in January of the previous year. This substantial drop underscores the challenges faced by the once-booming NFT marketplace.
However, not all is bleak in the world of OpenSea. Several top collections have experienced remarkable upticks in trading volume and sales. DeGods, for instance, saw an astonishing 1,125% increase in volume, recording 31,608 ETH in the last 30 days. Bored Ape Yacht Club, the second-largest collection on the platform, experienced a 211% uptick in volume at 30,831 ETH, and Mutant Ape Yacht Club saw a volume increase of 147%, recording at 17,737 ETH.
Despite these success stories, the overall picture for OpenSea is one of dwindling activity. The platform recorded its lowest monthly user engagement in the past year, with just 125,000 active users, a significant drop from previous figures. This decline coincides with OpenSea’s announcement of key policy changes, including ceasing support for NFT transactions on the BNB Chain and discontinuing royalty payments on secondary sales, sparking mixed reactions within the NFT community.
In further developments, OpenSea recently made the decision to discontinue the Operator Filter feature, aimed at enforcing creator royalties. This move has ignited discussions within the NFT community about the impact on artists and the future of the NFT sector.
Additionally, in a significant blow to OpenSea’s reputation, a former product manager, Nathaniel Chastain, was found guilty of wire fraud and money laundering in connection with an insider trading scheme involving NFTs. Chastain allegedly used insider information to purchase NFTs, then sold them shortly after for an illicit profit of over $50,000.
As OpenSea navigates these challenges, it faces stiff competition in the Ethereum-based NFT marketplace. The once-thriving platform must now recalibrate its strategy to regain its footing and address the evolving dynamics of the NFT space.