- Sellers dominated NFT trading as volume declined on the exchanges.
- Polygon, Solana and Ethereum based projects are witnessing reduced activity.
The non-fungible token [NFT] market experienced enormous interest as collaborations and collections such as Milady [LADYS] attracted the attention of traders. However, recent data suggested the excitement could be fading.
NFTs on sale
According to NFTstatistics.eth, the past few days have witnessed the highest percentage of Ethereum [ETH] volume on Blur [BLUR]with sellers dumping in bids en masse.
This trend, with 92% of ETH’s volume being bid dumping, is a negative indicator for the NFT market. It implies that sellers outweigh buyers, potentially leading to a decrease in demand and market activity.
Charts of the Day (June 8, 2023):
1/5
The last 2 days had the highest percentage of ETH volume on Blur *ever* where sellers dump in bids.
92% of ETH volume is made up of sellers who dump in bids.
— NFTstatistics.eth (@punk9059) June 8, 2023
In addition, data from Dune Analytics revealed a significant drop in trading volume on the exchanges in recent days. In addition to the decreasing volume, the number of traders participating in the market also decreased.
OpenSea remained dominant in terms of NFT transactions at the time of writing, capturing 47% of the market share. In terms of volume, however, Blur overtook its competitors with 5.2% of the market share.
Source: Dune analysis
In particular, the interest in NFTs from prominent protocols such as Polygon [MATIC] and Solana [SOL] turned down.
Dapp Radar’s data showed that popular NFTs on the Polygon network, such as y00ts and the Trump Card Collection, witnessed a decline in the number of unique active wallets. Consequently, the volume of transfers for these NFTs also decreased.
Similarly, interest in Solana’s most sought-after NFTs was waning as it went to press, as evidenced by Solanafloor’s Blue Chip Index.
Source: Solanafloor
Even Yuga Labs’ very popular NFT collection, the Mutant Ape Yacht Club [MAYC], saw a drop. Whales with MAYC have sold as many as 160 NFTs in recent days.
This significant selling pressure could further lower the bottom prices of these NFT collections.
Source: Sentiment
State of Ethereum
In addition to these concerns, there has been a substantial drop in the overall number of NFT transactions on the Ethereum network. This has resulted in a significant drop in gas consumption, indicating reduced participation and interest.
The combination of these factors raises questions about the sustainability of and continued interest in the NFT market. It suggests that the initial hype and excitement surrounding NFTs may be fading, leading to a potential slowdown in trading activity and market participation.