According to data compiled by Dune Analytics, the weekly trading volume of non-fungible tokens, or NFTs, in the blockchain space has dropped to $114.4 million.
This represents a 98% decline from the $6.2 billion recorded at the end of January. Weekly NFT trading volume hit an all-time high of $146.3 billion in early April, before plummeting in May with the start of a cryptocurrency bear market.
At the same time, however, the number of wallets holding at least one NFT has skyrocketed to 6.14 million, up from 3.36 million at the end of January. The NFT markets have also seen a big turnaround since the beginning of the year, when LooksRare was responsible for the majority of dollar trading volume. This volume has since returned to being mostly logged on OpenSea.io.
The price of NFTs has also fallen sharply as part of a broader crash in the price of Ethereum (ETH), the most widely used cryptocurrency for buying and selling digital collectibles. Currently, NFTs only fetch an average of $285 per sale, down from around $2,000 in early January.
In an interview with Cointelegraph, Tony Ling, founder of NFTGo, said that innovation will continue to drive NFT adoption despite the market downturn. Recently, Austrian post offices have been experimenting with NFT stamps, while Mastercard has launched personalized debit cards inspired by NFT collections.
Luxury jeweler Tiffany & Co has also introduced a personalized pendant experience for holders of a CryptoPunk NFT. However, month on month, the NFT market continues to deteriorate, as the average weekly NFT trading volume is down around 30% from the same period in August.
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