Top NFT Marketplace Loses 99% Trading Volume; Another Crypto Crash?

OpenSea, the world’s most popular NFT marketplace, is going through a rough patch. As per the data from blockchain-tracking service DappRadar, OpenSea witnessed a 99 percent drop in trading volumes since May 1. The trading figure plummeted from a whopping $2.7 billion in NFT sales to only $9.34 million, sparking concerns that the digital asset market might lose its charm.

OpenSea sacked 20% of its employees in July this year. However, it refuted the 99% figure and told Fortune that it prefers measuring transaction numbers by Ethereum (ETH) volume alone, suggesting the volatile nature of the cryptocurrency.

OpenSea Denies Claims Of 99% Trading Losses

Besides, OpenSea also claimed that DappRadar’s methodology isn’t up to mark, as its analysts compared OpeSea’s single-best sales with its all-time low figure. But despite OpenSea’s revised numbers, Fortune’s calculation found that the company saw its trading volume drop by 63% between May and July.

Moreover, the numbers in August are expected to decline even further. Even the revised metrics show a pretty rough trajectory and don’t really lend themselves well to an industry that has been cornered into proving that it’s not a sham.

NFT Might Survive The Crash But Could Lose Charm

What’s more important is that OpenSea wants everyone to know that despite the slump in its trading numbers, they are still confident in its approach and wish to come back stronger.

"We're playing the long game because we see what's possible, so we're not that concerned about short-term volatility," an OpenSea spokesperson told Fortune. "We always expected frothiness, hype, and deflation as the community and use cases evolve, the tech gets more sophisticated, and creators figure out how to build more utility into their projects."

Regardless of what OpenSea says, the numbers show the real story. However, it’s likely that they are one step ahead of what appears to be trouble in paradise. It’s also possible that the dust surrounding the crypto market crash might finally be settling—and while NFTs might still see the light at the end of the tunnel, people would likely stop splurging on digital monkey avatars.