NFT bear market, confirmed. At least according to the latest OpenSea daily volumes, which hit a 15-month low on yesterday’s trading volume. Let’s evaluate where things stand in this bear market, and what lies ahead for NFTs as we close out the year.
OpenSea’s Recent Headwinds
Sundays can be notoriously slow in crypto (for a number of reasons) and last weekend was no exception for NFTs. On October 9, OpenSea recorded $8.4M in daily volume – still a respectable amount of trading, but a number that nonetheless marked a 15-month low. ‘Glass half full’ NFT optimists will tell you that more NFT fragmentation exists across marketplaces now than a year ago, with the emergence of X2Y2 and LooksRare, and even Solana-focused MagicEden, Avalanche’s Joepegs, and more.
Nonetheless, OpenSea is still easily the dominant face for NFT marketplaces – there’s no way around it. Pessimists will tell you that NFTs are over and we’re on the glide slope to the ‘beginning of the end.’ As is often the case, both perspectives are extremes and the reality is likely somewhere in the middle: the NFT market is struggling, but it will survive to see another day.
Regardless, the volume lows come on the heels of the departure of OpenSea CFO Brian Roberts, who left the platform less than one year since joining (after serving the same role at rideshare company Lyft). Meanwhile, beyond Roberts’ departure, over the past few months, a delisting bug reappeared – this time affecting major collection, Azukis – and the platform has had to incur major layoffs.
OpenSea competitor, LooksRare, once showed promise to be a substantial contender – but OpenSea still holds the dominant spot. | Source: LOOKS-USD on TradingView.com
Macro Conditions: More To Come
Set aside the broad macro conditions across traditional crypto tokens and even stocks and tradable equities, the macro conditions around the NFT marketplace at large have been damaging this year. The carnage comes following an unparalleled boom in the space across the back half of last year, and even carried briefly into 2022. However, a majority of this year has been exposed to a now-undeniable slate of market headwinds.
NFT community debates are commensurate with the current state of affairs. Solana-based DeGods have been host to the latest discourse around royalties after announcing a reduction across all DeGods collections to 0% royalties.
There’s likely still more commentary and challenges to come in the space – but the real builders are still in the trenches working on the next tools and integrations to make the space better than it is today.
Featured image from Pixabay, Charts from TradingView.com
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