Dune Analytics reports a drop in sales in the non-fungible token (NFT) market, which has led to a decrease in user activity across multiple marketplaces, including OpenSea and Blur. The data analytics for blockchain-based systems reports that the market is even experiencing a decline to levels that have yet to be seen since July 2021.
The decline in the NFT market’s sales and user activity, the report says, has raised concerns about the market’s future. The drop in sales has been attributed to various factors such as market saturation, high prices, and lack of regulation.
Users and sales reaching a new low
The report is based on data compiled by NFT researcher SeaLaunch using a Dune Analytics dashboard. The data compiled reveals that the number of unique users on top NFT marketplaces, such as Blur, OpenSea, and LooksRare, has steadily declined over the past seven days.
A unicorn to rule them all 🦄
DAU lost by OS+B -> ~20k
DAU won by Uniswap -> ~41k
Meme coin season brought a non traditional competitor to the NFT Marketplaces war.
— sealaunch.xyz (@SeaLaunch_) April 20, 2023
On April 19, the number of unique users across NFT marketplaces dropped to 7.805, representing a significant decrease from the previous week’s 8.388. This decline in unique users marks a low not seen since July 31, 2021, when OpenSea and other marketplaces recorded 7.455 unique users.
The NFT market has also experienced a notable decrease in sales across multiple marketplaces. According to Dune Analytics, the number of sales over the past week had dropped to 16.149, marking the second-lowest number after the sales on November 9, 2021 when there were 12.910 sales.
Recent data analysis from multiple sources suggests that the NFT market is experiencing a notable drop in sales and user activity.
4/ We analysed in the past the type of users of each NFT marketplace according to their trading in the NFT market.
Interestingly, all type of users (from heavy traders to "normal" nft traders) are decaying activity at same pace.
— sealaunch.xyz (@SeaLaunch_) April 20, 2023
According to a dashboard compiled by data scientist and researcher Hildobby on Dune Analytics, the daily trader count on OpenSea has sharply fallen over the last week, hitting 10.640 on April 18. This is the first time since July 2021 that OpenSea’s daily trader count has dipped below 10,000. The decline in daily trader count on OpenSea is in line with the overall trend of decreasing user activity in the NFT market.
SeaLaunch, a dashboard that tracks the performance of NFT marketplaces, has reported that Blur also had its lowest daily sales count in 90 days, similar to OpenSea. The pro-focused NFT marketplace saw only 5.688 sales on Thursday. The number of daily unique users on Blur has also fallen, with only 1.777 reported on April 19, the lowest in 90 days.
Although some NFT marketplaces have witnessed a decrease in sales and daily users, not all metrics are negative. Dune Analytics data reveals that Ether (ETH) trading volume has remained relatively stable across NFT marketplaces for the past 30 days. Additionally, SeaLaunch notes that Uniswap has managed to increase its daily active users over the past two weeks when compared to the number of daily active users on OpenSea and Blur.
Possible causes for the falling numbers
According to SeaLaunch, the decline in user activity and sales across some NFT marketplaces can be attributed to a “macro scenario” that has impacted trading patterns. The platform points to high gas prices and tax season liquidity issues as possible factors.
SeaLaunch also said, “Other scenarios may also have contributed to this, such as high-volume Blur airdrop farmers reducing the trading volumes and reducing liquidity, and the meme coin trading frenzy in the last days with coins such as PEPE.”
Hildobby shared similar sentiments to SeaLaunch regarding the decline in user activity. “I think it’s a combination of factors, but the biggest factors [in my opinion] are that not much interesting has been happening in NFTs lately, and rapidly rising gas prices aren’t helping,” he said.
The recent dip in cryptocurrency prices has also played a significant role. The total value locked in NFTs has dropped by over 40% from its February 2023 peak, as per CoinDesk. This decrease in value has led to a corresponding drop in demand for NFTs, as investors may be less willing to invest in high-priced assets during periods of market volatility.