NFT Trading Volumes on OpenSea dropped again for the second consecutive month. ETH trading volumes on the other hand took a bigger hit in March
NFT Trading Volumes On OpenSea Weaker For Second Consecutive Month
The year 2022 began with a bang. NFT trading volumes on OpenSea reached an all-time high in January.
According to Dune Analytics, ETHtrading volume reached $4.97 billion in January, surpassing the previous ATH of $3.42 billion set in August.
However, trading volumes have dwindled since then. In February, ETH trading volume fell to $3.58 billion, remaining above August’s previous high.
ETH trading volumes, on the other hand, took a bigger hit in March.
According to Dune Analytics, ETH trading volumes fell to $2.49 billion in March, compared to $3.42 billion in August and $4.97 billion in January.
A similar pattern was observed with the sale of OpenSea monthly NFTs (ETH). OpenSea sold 1.80 million NFTs in March, down from 2.47 million in January.
Factors Contributing To The Downward Trend
Several factors may have contributed to the downward trend in trading volumes at OpenSea. These could include rising cryptocurrency prices, increased illicit activity, and increased regulatory scrutiny.
The peak of the NFT market in January coincided with the trough of the crypto market. Bitcoin (BTC) fell from an all-time high of $68,979 in November to a January and current year low of $32,991. Bitcoin has been on the rise since January, bolstering the broader crypto market.
Following a 16.7 percent drop in January, Bitcoin increased by 12.2 percent in February and 9.0 percent in March.
LUNA had an even better couple of months. LUNA increased by 74.2 percent in February and 12.7 percent in March.
Finally, an increase in the number of NFT marketplaces could be a factor.
LooksRare (LOOKS) launched this year in January, with January trading volumes reportedly exceeding OpenSea trading volume.
The OpenSea NFT marketplace and others hoping for an increase in trading volumes and trading fees are not out of luck.