NFT volume dropped to $63 million in the past week, bubble burst?

Earlier this year, the NFT market was full of capital and emerging teams. Gaming companies, tech giants, fashion and sneaker businesses are betting on NFTs as the next big tech product.

After three months, however, the discussion of NFTs dwindled, and with considerable controversy and a sharp drop in the overall NFT market, large institutions took a wait-and-see approach.

In fact, total NFT sales exceeded $23 billion last year as artists, investors and entrepreneurs flocked to the nascent Web3 space.

br



So why is the NFT market suddenly quiet?

The recent Crypto volume has affected the volume of NFTs. According to Non-Fungible.com, NFT volume was only $63 million last week.

Last week’s NFT trading volume was still $168 million. Weekly sales of NFTs peaked at $1 billion in early January.

OpenSea, the world’s largest NFT trading platform, saw an 80% drop in daily volume, leading the media to consider it a “huge NFT sell-off.”

According to the Financial Times, the average daily volume of OpenSea NFTs fell by 80% to $50 million in March from $284 million in February.



br



Regarding OpenSea, NFT tracker DappRadar showed a drop in total traders and volume as well.

Over the past 30 days, total volume has plummeted by nearly 67% to just $2.6 billion, although that figure still exceeds the revenue of some gaming companies in a year, and the number of traders has dropped by 23% to just 489,796 users.

It is worth noting that even during the NFT sale, millions of dollars and Crypto are still being traded on OpenSea every day. People are still spending tens of thousands on NFTs, although research shows that the frenzy is waning.

Bloomberg reports that the NFT market is starting to cool down. The average market capitalization of NFTs has fallen sharply recently, from a high of $6,900 at the start of the year to around $2,000 now.

Global uncertainty and political turmoil may have contributed to this.

br



Some collectors are starting to lose money. Fortune reports that a user sold a Boring Ape Club NFT for $224,000 today, for a loss of $67,800.

The drop can also be attributed to increased scrutiny by U.S. regulators. According to a Bloomberg article, the U.S. Securities and Exchange Commission (SEC) announced this week that it is investigating whether NFTs are securities and should be regulated as securities.