Ever since the cataclysmic events that unfolded on the blockchain last spring, a wave of uncertainty has pervaded the NFT space. Leading marketplace, OpenSea, has seen a 99% reduction in volume since recording record highs on May 1st.
Back then, OpenSea was riding high, witnessing astronomical figures within its trading volume metrics. As a result, May 1 saw an eyewatering $405 million traded on the platform in just 24 hours. However, according to the boffins over at DappRadar, by August 28, that figure had dropped to a measly $5 million, with the wider digital collectibles market facing the brunt of the latest downturn.
The uncertainty around the ongoing crypto bear market remains the primary driving force behind the steep decline, with many users wary of the potential to lose funds in both dollar and crypto value simultaneously. However, many shrewd uses of non-fungible tokens such as asset-backed NFTs remain largely unaffected.
Exacerbating the whole NFT situation, lending platforms such as BendDAO have run into difficult times. Essentially, seeing the floor prices of their collateral inching perilously close to the value of the loans they have issued. Thus, adding to the fear, uncertainty and doubt surrounding the floor prices of some of the biggest collections in the industry.
However, while the chips are down, and backs against the wall, the best projects in town will continue to build. Therefore, giving those with the stones to wait it out a chance to see what they are really made of.