NFT Trading Volumes Hit New Lows, NFT Trading Volumes Hit New Lows

The decline in the crypto market for the past few months has also affected the trading volume of Non-Fungible Tokens (NFTs). Along with this, apprehensions about NFTs have also increased with many firms in this segment becoming the target of hacking. Data from major NFT marketplaces such as OpenSea shows that trading volumes have fallen significantly in recent months.

According to Dune data, OpenSea’s trading volume was at an all-time high at the beginning of this year with around $5.8 billion. Since then it has been declining. In May, it had come down to $3.1 billion. After this, it decreased the most in June and it was only $ 826 million. Along with this the volume per day on this marketplace is also decreasing. OpenSea is getting tough competition from some new exchanges. OpenSea has introduced a launchpad for those building their digital collectibles on the Solana blockchain. The launchpad will offer new NFTs as well as pre and post activities. Along with this, support for secondary sales will also be available.

With this, OpenSea has moved towards a multi-chain feature. “Solana has emerged as a leading blockchain for NFTs over the past year. We share its vision of a scalable NFT ecosystem,” OpenSea explained in a blog post. Using blockchain technology in NFTs, tokens of unique items are authenticated which are linked to reproducible digital assets. These can include art, music, in-game items, and videos. These can be traded online but cannot be duplicated.

With the growth of business in this segment, there has also been a rise in scam cases. In some such cases, NFT buyers have suffered huge losses. In the US, some major fraud cases related to this segment have been uncovered. Some of the accused have also been arrested. These cases have raised apprehensions about trading in this segment. The Financial and Security Organization in China has warned against the financial risks associated with NFTs.

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