NFT Projects Skyrocket Amid OpenSea’s Decline In Volume

OpenSea struggles to keep its record but NFT projects have seen a rapid increase.

The year 2021 was marked by significant milestones and outstanding accomplishments for OpenSea, with the marketplace surpassing $14 billion in transaction volume.

OpenSea, the world’s leading NFT platform, didn’t take long to break its own monthly transaction volume record.

Dune Analytics revealed in January 2022 that the OpenSea network reached the highest monthly transaction volume ever.

According to the on-chain data platform, transaction volume in January 2022 was around $5 billion, while it reportedly topped $2 billion in December 2022. The precise amount is $4,795,721,595,90746.

However, the last month turned out poorly for OpenSea.

OpenSea Takes a Hit

The market’s entire rate dropped by 40% from the previous month to nearly $3 billion.

On the other hand, NFT projects are performing well on the platform, with unique users and transactions being on the rise.

A number of NFT projects are prepared to tap the secondary market while the entire industry is navigating the next step in terms of the utility and integration of NFTs into the Metaverse, according to the recent reports.

Another factor obviously influencing the entire market is the uncertainty surrounding world politics at this time of year.

As a new technology, NFT has faced several obstacles. NFTs, like many cryptocurrencies, are frequently bought and sold online, paid for with cryptocurrencies, and encrypted using the underlying software.

Many people are wary of NFT’s credibility because most countries across the world have yet to approve cryptocurrencies.

Furthermore, anyone with an internet connection can use blockchain technology to create NFTs. Several artists have spoken out against the fact that their work is being sold as NFT by nameless individuals.

Plagued by Issues

Recently, OpenSea has been involved in various unforeseen scandals surrounding NFT frauds. These occurrences have raised serious concerns about the platform’s security.

NFT, like cryptocurrencies, is not controlled or operated by any entity, therefore if the owner’s password is stolen by hackers, no one can help.

Despite that, the world’s leading NFT market is continuing to grow, as more individuals and businesses enter this incredibly profitable market every day.

Given the risks and obstacles that the NFT market faces, regulator involvement will undoubtedly be required.

As the NFT market grows and expands its use cases into many new areas, the need for an international regulating organization to protect consumers and the future becomes increasingly important.

The price of Ether (ETH) has plummeted by 16% in the last week, and because the majority of NFT projects are based on the Ethereum network, NFT collectors are less interested in buying NFTs at bargains.

The previous month also marked changes in top NFT collections, with Azuki making outstanding progress and overtaking well-known collectibles such as the Bored Ape Yacht Club (BAYC) and Crypto Punks to be the leading collection.

Additionally, the launch of Invisible Friends on February 23 raised more than $23.1 million at a floor price of 8.95 Ether ($22,010.74), exceeding the projected target of $20 million.

NFT is progressively attracting more major organizations, firms, and corporations across the world.

Time also launched the NFT collection in September 2021, which would provide unlimited access to the magazine’s online until 2023. In September 2021, PepsiCo’s Lay’s potato brand teamed with the internet platform Project Ark to launch the NFT artwork, which featured over 3,000 smiling images of individuals from around the world.

Previously, market data indicated a growing interest in the NFT force among high-profile athletes.

Luka Modric and Neymar are among the professionals on the list. While Modric was launching his NFT collection, the Brazilian striker just spent over $1 million on two NFTs.

Alexander Ovechkin and Michael Bisping have previously expressed interest in NFT.