Could OpenSea Sink If PFP NFTs Continue To Fail To Attract Investors

With revenue of $9.2 million, OpenSea, the world’s largest NFT marketplace, led dYdX, PancakeSwap and Ethereum Name Service with the highest monthly growth in September. This is according to data from the cryptocurrency research platform Cryptorank.

Interestingly, the $9.2 million that OpenSea made in September represented a 23.2% drop from the platform’s August profit.

Source: Cryptorank

All is not well in the cap

Although OpenSea was ranked as the dApp with the highest revenue in September, data from Token Terminal showed that there has been a steady decline in daily revenue on the platform in recent months.

According to the crypto-asset provider, daily revenue on OpenSea has fallen by 59% over the past 180 days. It’s down 77% in the last 90 days.

Source: Token Terminal

It is well known that the tightening of economic conditions and the general downturn in the cryptocurrency market has shifted investor interest from speculative asset classes to those with lower risks. This has led to a sharp drop in demand and sales of NFTs as a class of digital assets.

According to data from Dune Analytics, sales volumes in the NFT markets have declined since the beginning of the year. OpenSea’s monthly NFT sales volume, which tops the group with the most decline, is down 94% over the past 10 months. On the context, OpenSea closed the month of January with $5.88 billion in sales. By the end of September, that had fallen to $343 million.

Similarly, LooksRare, which had sales of $11 billion in January, saw a 97% drop at the end of September.

Source: Dune Analytics

The desire of buyers and sellers using these platforms to facilitate buying and selling transactions in the NFT markets. However, with the continued decline in interest in PFP NFTs, the number of monthly NFT buyers and sellers has decreased significantly since the beginning of the year.

Data from Dune Analytics showed that buyers and sellers in the NFT markets in January amounted to 441,363 and 292,904, respectively. However, by the end of September, these numbers had fallen by 94% (226,959 buyers) and 16% (252,908). seller).

Source: Dune Analytics

With the decrease in the number of buyers and sellers in the NFT markets, the number of NFT transactions has also decreased. According to Dune Analytics, OpenSea recorded the highest decline in the number of transactions since January. The market closed January with 4.9 million NFT trades. But as investor interest waned as the year progressed, the number of deals was fixed at 1.7 million at the end of September.

Source: Dune Analytics

With PFP projects dominating the NFT ecosystem to a large extent, the continued decline in this category of NFTs could lead to increased investor interest in music NFTs, gaming NFTs, etc.

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