- May 2024 saw the lowest NFT trading volumes since October 2023, impacting the Ethereum, Bitcoin, and Solana ecosystems.
- Top NFT projects like BAYC and CryptoPunks have felt the market dip, with BAYC’s trading reaching its lowest level since August 2021.
The global cryptocurrency market is on a surge, with Bitcoin (BTC) and Ethereum (ETH) reaching new highs. Bitcoin has soared to new highs and is trading between $68,000 and $70,000, while Ethereum is approaching the $4,000 mark. Adding to the excitement around these gains is the prospect of Bitcoin and Ethereum ETF approval, which has attracted a lot of attention.
However, amid this market rally, it is important to note that May saw a significant decline in trading volumes of NFTs and Ordinals, reaching the lowest levels since October 2023. This decline is evident across major ecosystems including Ethereum, Bitcoin and Solana. all are witnessing a significant decline in activity. Ordinals represent the first version of non-fungible tokens (NFTs) minted on the Bitcoin network.
Don’t let the pump in BTC and ETH distract you from the fact that May was the month with the lowest trading volume for NFTs and Ordinals since October 2023.
Volume has fallen heavily across the board, with all three major ecosystems (ETH, BTC, SOL) taking a hit.
His floor… pic.twitter.com/GpP3KA5FwD
— wale.moca 🐳 (@waleswoosh) May 27, 2024
Floor prices are resistant to this trend. According to the post by NFT analyst @waleswoosh
Crypto Market Peaks: NFTs Plunge
For example, Bored Ape Yacht Club (BAYC) has seen a sharp decline of $1,927.58, while other projects such as Pudgy Penguins and Nodemonkes have fallen by $1,457.31 and $8,794.06 respectively. Bitcoin Puppets saw a significant drop of $11,942.25, and MadLads and SMB also reported drops of $2,986.08 and $1,989.64 respectively.
In addition, Ordinals’ monthly sales fell 70% to $193 million, marking a significant decline from December, which recorded the highest sales in Ordinals history at $868 million.
Additionally, lower trading volume on the Ethereum blockchain caused NFT floor prices to drop. High-profile collections like BAYC and CryptoPunks have suffered declines. Although daily sales have ranged from 8 to 67 NFTs per day since early May, the collection’s reserve price has steadily declined.
BAYC in particular saw the floor price on OpenSea fall to the lowest level since August 2021, by 90%, reaching 11,747 ETH ($45290) on May 28.
Despite the overall boom in the crypto market, the decline of the NFT sector highlights the complex dynamics at play, where rising cryptocurrency prices do not necessarily translate into solid NFT performance.