NFT Market Fading? Volume hits lowest since July 2022

Data shows that weekly NFT volume has fallen to its lowest level since July 2021. Is the heat in the NFT market fading?

As BTC and the broader Crypto market continue to slump, NFTs also appear to have suffered somewhat over the past month.

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The correlation metric here is “volume,” which is a measure of the total amount of NFTs traded on various blockchains over a given time period.

When this indicator soars, it means that there are more and more NFT transactions. This trend may indicate that market enthusiasm around NFTs is on the rise.

On the other hand, declining volume means that NFT market activity is declining, which means that community interest in these digital collectibles may be declining.

The chart below shows the trend of weekly NFT volume over the past year:

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As you can see in the chart above, the 7-day average daily volume in the NFT market already appears to have declined in February.

This metric represents the average daily volume over the past week. Currently, the metric is worth about $1.76 million.

The value was more than five times less than the $924 million on Jan. 31, the last time a similar low was seen last July.

The reason behind this trend may be the falling price of BTC and other Cryptos. In addition, the Russian-Ukrainian dispute will also cause the stock market to plummet.

Of course, it could also be a sign of the bursting of the NFT market bubble. However, the probability of this happening is relatively low. Market enthusiasm has not waned, and traditional institutions are increasingly adopting NFTs.