The Ethereum NFT market saw a significant decline in daily trading volume, dropping below 4,000 for the first time since June 2021. In February 2022, the number reached a peak of over 80,000 but has been steadily decreasing since then. This downward trend has been consistent, with the NFT sector falling behind other areas of the cryptocurrency industry, which have been experiencing excitement and growth throughout the year.
Market transactions on the Ethereum NFT marketplace have been declining monthly since January, with January already showing a significant decrease compared to the high volumes seen during the 2021/2022 bull market. Sales in May fell short of $500 million, indicating a slowing market.
One of the most alarming statistics is the daily trading volume of Ethereum NFTs, dropping below 4,000 for the first time in nearly a year. While it remained steady from June 2023 to February 2024, a decline has been observed once again.
The Ethereum NFT landscape is facing challenges as it competes with more affordable alternatives. Despite being the go-to blockchain for many use cases in the past, Ethereum is no longer the dominant platform. The market has been hit with negative news about falling valuations and activities, with most coverage being pessimistic or non-existent.
Amidst these challenges, there have been some positive developments, such as an upcoming collaboration between Adidas and Stepn for an NFT collection. Additionally, the announcement of the Pudgy Penguins game, based on an NFT collection and toy line that sold 1 million units in less than a year, has brought some excitement to the market.
Despite occasional high-profile collections, overall volumes are stagnating, and floor prices are dropping across the board, including in popular subcategories like Bitcoin Ordinals.
In other cryptocurrency news, Solana (SOL) is struggling to break through resistance zones amidst market volatility, reflecting the broader challenges facing the sector.