There has been an air of uncertainty hanging over the NFT market ever since the dramatic events that took place on the blockchain last spring. Since reaching record highs on May 1st, volume on the top marketplace, OpenSea, has decreased by 99%.
The trade volume stats for OpenSea at the time were reaching incredible heights. Due to this, $405 million was traded on the marketplace in just 24 hours on May 1. But on August 28, the experts at DappRadar claim that amount had fallen to a pitiful $5 million, with the larger digital collectibles sector bearing the brunt of the most recent decline.
The ongoing crypto bear market's uncertainty is still the key factor fueling the sharp decrease, as many users are concerned about the possibility of losing money in both dollar and crypto value at the same time. But many clever use of non-fungible tokens, like asset-backed NFTs, are mostly unaffected.
Lending platforms like BendDAO are having trouble, which is aggravating the whole NFT scenario. Essentially, they are observing how dangerously close their collateral's floor prices are to the loans they have made. Consequently, the anxiety, uncertainty, and doubt surrounding some of the largest collections in the industry's floor pricing have increased.
The best projects in town will nonetheless continue to develop even though everyone is up against it and has their backs against the wall. Consequently, those who have the patience to wait it out will have the opportunity to demonstrate their true character.
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