NFT volume drops to a yearly low in June

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LAGOS (CoinChapter.com) — The total volume of Ethereum nonfungible token (NFT) in June plunged to the lowest level this year, according to blockchain analytics firm Nansen.

In detail, the volume of Ethereum NFT trades has declined by 55% in the past month, from 1.3 million ETH to around 584,000 ETH. Notably, that drops from about $2.6 billion to roughly $672 million in the last 30 days.

Additionally, the data indicated that NFTs are being purchased for less overall, mainly due to the collapse of crypto markets. Data from the NFT aggregator, CryptoSlam, also indicated that the bearish sentiment in the crypto markets has trickled down to the assets space.

It revealed that the average sale price for an Ethereum NFT dropped from $2,463 in May to just $703. The massive decrease also affected the number of active traders for Ethereum NFTs, which declined by 16%, from about 422,000 to 354,000.

Nansen disclosed that the data was collected across the six top NFT marketplaces: OpenSea, LooksRare, Mints, X2Y2, 0x, and Crypto Pinks.

It reviewed six indexes of collections of NFTs denominated in ETH that are representative of trends in the market. However, all the six gauges recorded significant decreases in Q2 from the first three months of 2022.

Why Is NFT Marketplace Volume Declining?

The recent collapse in the value of several digital assets is the main catalyst for the present drop in volume. Also, a decline in investor interest is another reason for the waning volume of NFT marketplaces. 

Louisa Choe, a research analyst at Nansen, said the current downtrend shows digital asset market participants’ attitudes. She said:

“This cautious sentiment points to investors focusing on capital preservation rather than taking risks in hopes of gains.”

Retail Interest Drops To 2022 Low

Similarly, data from Google search trends has revealed that interest in NFTs has dropped significantly. For example, according to Google Trends, the search for the term ‘nonfungible tokens’ has dropped to a yearly low of 7.

Google Trends uses numbers to represent search interest, with ‘100’ as the peak popularity for the specific term. Although, it’s worth noting that high interest doesn’t necessarily imply an increase in asset price or a rise in actual buying.

Google Trends revealed that at the beginning of the year, searches for NFT stood at 57. It also reached its peak between January 23–29 when it achieved a score of 100 for the period. However, joining the entire crypto market in the current downtrend search for NFT has plunged more than 90%.

Google search results also disclosed that Hong Kong had been the nation most interested in digital assets in the last seven days. However, a further state-by-state breakdown shows that Singapore, Austria, and Taiwan still have considerable interest in NFTs.

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