The volume of trading on the OpenSea Marketplace fell by more than 90%. Is it possible to say that the interest in non-interchangeable tokens has passed, and what prospects this sphere has.
In September, trading volumes on the OpenSea Non-exchangeable Token Marketplace (NFT) fell by 99% after peaking in August. While the daily trading volume on the platform was $349 million on August 28, by September 12 it had dropped to $1.7 million. Also according to The Block, NFT trading volume totaled $312 million during the week of September 5-12, although a month earlier a record $1.05 billion was set.
The current drop in NFT trading volumes should not be seen as stagnation in the industry, Vitaly Kirpichev, director of development for TradingView in Russia, explained. According to him, the dynamics of art trades are always pulse-like. For example, if tomorrow there will be an interesting art object on the market and demand from large investors, there may be a deal that will exceed all previous transactions.
August was a peak month for NFT, as well as for the entire market, added Vladimir Smetanin, CEO of the Swiss financial company Newcent. He said crypto-enthusiasts usually tend to buy NFT more easily at such times.
“I think the hype hasn’t gone away – it’s a new topic and it’s changing very actively and quickly,” Smetanin explained. He recalled that traditional artists and venues (Sotheby’s, Christie’s and even the State Hermitage Museum) are entering and trying out NFT.
In early September, the Hermitage held an auction at the NFT-marketplace Binance, during which non-exchangeable tokens of paintings from its own collection were sold for over 32 million rubles. A total of 5 works were put on sale, the most expensive of which, Leonardo da Vinci’s Madonna Litta, was sold for more than $150,000 (approximately 10 million rubles).
At the same time, auction houses Sotheby’s and Christie’s are actively selling NFT-tokens. For example, in June, Sotheby’s sold a rare “Alien” token #7523 (“Alien”) from the CryptoPunks collection for $11.8 million. And in May, Christie’s reported the sale of nine rare NFTs from the CryptoPunks collection for $17 million.
“There will certainly be a surge of interest in NFTs, and not just one – it’s a whole new topic, at the intersection of art and technology,” Smetanin emphasized.
The current situation in the NFT market is normalization and maturing of the market, says Nikita Zuborev, senior analyst at Bestchange.ru. In his opinion, the sphere of non-exchangeable tokens will continue to develop, there will be many single cases of rapid growth, but they will all be associated with the media power and social resource of the issuers, rather than the popularity of the phenomenon itself, as in the beginning of the year.
The current drop in trading volumes does not mean the closure of companies and projects involved in the sale of NFT, the specialist added. He noted that committed startups will be able to form a stable market and will remain in this state for a long time.
The dynamics of the popularity of topics around “NFT” in search engines indicates the continued development of the community, Zuborev assured. Currently, according to Google Trends, the number of search queries has returned to spring levels, which means that interest in the field remains strong despite the correction.
“NFT startups will continue to exist and remain profitable, but the super profits for such platforms are likely to be a thing of the past. Tokens from popular NFT projects that manage to survive the maturation of the industry will become a more conservative investment than before,” predicted the specialist.
In his opinion, in the near future at the peak of popularity will be non-exchangeable tokens from the GameFi industry, rather than traditional collectible tokens from marketplaces. It is also possible single cases of explosive growth for NFT large media personalities and sports clubs, it is worth to keep track of the announcements of such events, the expert advised.