OpenSea, the dominant Non-Fungible Token (NFT) marketplace, is experiencing a historic plunge in sales volume. Data suggests that April 2024 will be the platform’s weakest month ever, marking a continuation of a downward trend that began earlier this year.
This sales decline coincides with a significant drop in user activity on OpenSea. Since February’s peak of $153 million in monthly sales volume, the platform has witnessed a steady decrease. April’s projected total of $82 million represents the lowest point since September 2023, and the number of NFTs sold is on track to be the lowest since June 2021.
The decline in sales volume has a direct impact on OpenSea’s income. The platform generates revenue through transaction fees, and the reduced user activity has led to a decrease in both primary transaction fees and royalty fees.
Interestingly, while OpenSea struggles, Blur, a rival NFT marketplace and aggregator, has seen a rise in trading volume. Despite having fewer users, Blur captured a staggering 79% of all NFT transactions in the past week, compared to OpenSea’s 21.3%. This suggests a shift in user preference towards Blur, potentially due to its features or fee structure.
It’s important to note that OpenSea’s struggles aren’t happening in isolation. Data from CryptoSlam reveals a wider slump in the global NFT market, with sales volume dropping by 26% in the past 24 hours. This decline could be due to a shift in investor focus back to cryptocurrencies, with Bitcoin and Ethereum still leading the way in NFT sales.
Adding another layer of complexity to the NFT market’s current state is the issue of creator royalties. Yuga Labs, the powerhouse behind the Bored Ape Yacht Club and Mutant Ape Yacht Club collections, recently made a significant move by partnering only with NFT marketplaces that honor creator royalties.
