Interest In NFTs Decreasing As OpenSea Experiences Reduced Sales Volume

The sales volume of Non-Fungible Tokens (NFTs) has experienced a 4% decrease since the start of March. Within this period, there has been a downturn in the performance of premier NFTs. The leading NFT marketplace, OpenSea, concluded last month with a reduction in its 30-day NFT sales volume.

Data sourced via a Dune Analytics dashboard prepared by Rchen8 indicates that NFT sales on the platform over the past 28 days amounted to $147 million, representing a 4% drop compared to the amount in February which was $153 million.

Declining User Engagement

The decline in the sales volume can be attributed to the consistent decrease in user engagement since the beginning of the year. Up to now this month, 75,000 active users have engaged in at least one transaction on OpenSea. This reflects a 27% decrease compared to the number of active users in February which were just over 103,000 and a 40% decrease compared to January which had approximately 125,000 users. March recorded the lowest monthly user count on OpenSea since July 2021.

Due to reduced user activity, the monthly count of NFTs sold on OpenSea has reached its lowest point so far this year. In the last 28 days, the number of NFTs sold totaled 123,000, marking a whopping 38% decline which also represents the lowest monthly count since May 2021.

Fees Go Up

Interestingly, despite the sluggish user activity and sales volume this month, the monthly fees of the platform, which stem via primary transactions and royalties, have reached their highest level since the beginning of the year. Over the last 28 days, fees through primary transactions and royalties have each amounted to $4 million.

In Q1 2024, the initial two months witnessed increased activity in the NFT vertical, resulting in the growth of floor prices for various NFT collections, including Blue-Chip NFTs. These are distinguished by their high floor price, robust community, and potential for future utility. However, according to the Blue-Chip Index, which provides data reflecting the performance of platforms like OpenSea, the marketplace peaked at 5,800 ETH on March 8th and has since begun to decline.