NFT Fad Fading: Trading Volume Declines To Lows Not Seen Since June 2021
Data shows the NFT weekly trading volume has now declined to lows not seen since June 2021, as the NFT hype continues to die down.
NFT Weekly Trading Volume Has Now Come Down To Just $81 Million
The non-fungible token market has been struggling since a few months now as the rest of the crypto market has been going through a bear market.
The “weekly trading volume” here refers to the amount of USD sales that NFTs saw during the span of last seven days.
This volume had been fluctuating in the range of $230 million to $260 million in the months between the last third of May and the first ten days of August.
While these values were significantly lesser than those observed during the preceding several months since August 2021, they were nonetheless still not too low.
That changed last month, however. Here is a chart that shows the trend in the weekly NFT trading volume during the last few years:
The value of the metric seems to have gone down in recent days | Source: NonFungible
As you can see in the above graph, the NFT weekly trading volume (displayed in white) has plunged down in the last few weeks.
The indicator’s value is just around $81 million now, the lowest it has been since June 2021, more than a year ago. At the all-time high set back in September of the same year, the volume was a little under $2 billion.
Right before this recent plummet, the indicator observed a very large spike to nearly ATH values, but it didn’t last too long.
The chart also shows the data for the number of sales (colored in red), which is a measure of the pure number of transactions of these digital collectible tokens.
It looks like this metric hasn’t dropped down to as bottom a value as the volume yet since it’s still at the same level as the low reached back in June of this year.
These latest constant low volumes suggest that interest around NFTs has been waning recently. Currently, it’s unclear when the market may observe a rebound, or if it will reach the same heights as during last September.
At the time of writing, Bitcoin’s price floats around $19.7k, down 1% in the last seven days. Over the past month, the crypto has lost 13% in value.
The below chart shows the trend in the price of the coin over the last five days.
Looks like the value of the crypto has been trending mostly sideways during the last few days | Source: BTCUSD on TradingView
Featured image from Andrey Metelev on Unsplash.com, charts from TradingView.com, NonFungible.com