The weekly trading volume of nonfungible tokens, or NFTs, in the blockchain space has fallen to $114.4 million, according to data compiled from Dune Analytics.
When compared to the $6.2 billion seen around the end of January, this represents a 98% decrease. Early in April, the weekly NFT trading volume reached a record high of $146.3 billion before precipitously plummeting in May as the ongoing crypto bear market got underway.
But at the same time, the number of wallets with at least one NFT has increased dramatically, from 3.36 million at the end of January to 6.14 million today. The NFT marketplaces also experienced a significant shift from the start of the year, when LooksRare accounted for the majority of the dollar trading volume. Since then, it has returned to OpenSea.io.
As part of a larger decline in the price of Ethereum (ETH), the most popular cryptocurrency used to buy and sell digital collectibles, the price of NFTs has also dropped significantly. In contrast to early January, when an NFT typically brought around $2,000 per sale, the average price today is only about $285.
Despite the market downturn, innovation will continue to drive NFT adoption, according to Tony Ling, founder of NFTGo, in an interview with Cointelegraph. In recent times, Mastercard has launched NFT-specific debit cards, while Austrian post offices have experimented with NFT stamps.
For owners of CryptoPunk NFT, luxury jewelry brand Tiffany & Co. has also unveiled a personalized pendant experience. However, the NFT market has been getting worse month over month as the average weekly trading volume has decreased by about 30% since the same time in August.