OpenSea, the leading NFT marketplace, has experienced a 4% decline in monthly sales volume since March began, attributed to a notable drop in user activity. The total number of NFTs sold has also plummeted, reaching its lowest since May 2021. Despite the downturn in user activity and sales volume, OpenSea's monthly fees from primary transactions and royalties have risen to their highest this year. Additionally, the Blue-Chip NFT Index, which measures the performance of top NFT collections, has declined by 27% in the past three weeks, indicating a decrease in their performance.
NFT Market Plunges Amidst Declining User Activity and Tepid Blue-Chip Performance
OpenSea, the preeminent non-fungible token (NFT) marketplace, is poised to end March with a disappointing decline in its monthly sales volume. According to data from Dune Analytics, NFT sales on OpenSea in the past 28 days have totaled a mere $147 million, representing a concerning 4% drop from the $153 million recorded in February.
This sales volume decline is a direct consequence of the steady erosion of user activity on the marketplace since the beginning of the year. In March alone, only 75,000 active users completed at least one transaction on OpenSea, marking a precipitous 27% drop from the 103,000 active users recorded in February and a staggering 40% decrease from January's 125,000. This March represents OpenSea's lowest monthly user count since July 2021.
As a result of this plummeting user activity, the monthly count of NFTs sold on OpenSea has plunged to its lowest year-to-date. In the last 28 days, the number of NFTs sold on OpenSea has totaled a mere 123,000, a sobering 38% drop from the 199,000 total NFTs sold on the marketplace in January. This level of sales activity represents the marketplace's lowest monthly count since May 2021, a testament to the current market malaise.
Paradoxically, despite the low user activity and sales volume on OpenSea this month, the platform's monthly fees derived from primary transactions and royalties have risen to their highest since the beginning of the year. In the last 28 days, fees from primary transactions and royalties have each amounted to $4 million, an unexpected surge that deserves further analysis.
Adding to the market gloom, the performance of Blue-Chip NFTs in the first quarter of 2024 has been anything but stellar. Blue-Chip NFTs, characterized by their high floor price, strong community, and potential for future utility, experienced a brief surge in value between January and February. However, according to NFTGo's data, the Blue-Chip Index, which measures their performance, peaked at 5,800 ETH on March 8th and has since embarked on a steady decline.
At press time, the Blue-Chip Index stood at a mere 4,263 ETH, representing a concerning 27% decline in the past three weeks. This suggests a waning interest in some of the most sought-after NFT collections, a worrying sign for the overall NFT market.
In conclusion, the NFT market is currently experiencing a period of significant turmoil, characterized by declining user activity, reduced sales volume, and tepid performance of Blue-Chip NFTs. While the reasons for this decline are complex and multifaceted, it is clear that the NFT market is facing challenges that it must overcome in order to regain its former glory.
