A meteoric rise of $4 billion in sales volume from the top non-fungible token marketplace, OpenSea, was followed by a volume drop in September.
In addition to the negative trend seen throughout the cryptocurrency markets, the NFT marketplaces have been affected, with platforms, collections, and floor prices all dropping.
OpenSea’s Scaling Woes
This may be linked to a relatively major snafu by OpenSea itself. A limited number of customers’ NFT assets worth $100K were inadvertently destroyed in an incident last week due to a fault on the platform relating to ERC721 transfers to ENS identities. It is known that the situation was handled quickly and the money was refunded.
Last week, the platform’s CEO tweeted out a bounty offer of one Ethereum (ETH) token to anybody who referred an applicant who was hired.
A recent report from DappRadar shows that the amount of funds exchanged through OpenSea has decreased by nearly 50% in the past seven days to $792.23M from a pool of 156,811 traders, which is 10% fewer than the number of registered traders in the previous week.
Even if this drop was short-term, OpenSea is still dominating in the market over its nearest rivals, Axie Infinity and CryptoPunks, with $158.24M and $45.92M in volume, respectively.
OpenSea’s Meteoric August
$3.4 billion worth of nonfungible tokens, or NFTs, were transacted on the Ethereum blockchain in August, up from $300 million in July. OpenSea accounted for 90% of the volume.
The data suggests an increase in the level of interest in non-interchangeable tokens, which is a term used to describe digital assets that are held on blockchains. Such software may be used to store information on a wide variety of things, including artworks, videos, and virtual property.
The clamor to get these popular digital assets is driving up the prices of both Ether and Solana, as well as other smart contract blockchains, while also adding to the price increase of Ether and Solana, as well as other smart contract blockchains.