NFT Trading Volume On OpenSea Drops By Over 70%

OpenSea, the world’s biggest marketplace for non-fungible tokens (NFTs) based on daily volumes, has recently witnessed demand in NFTs decline in tandem with trading volume.

It’s worth noting, though, that NFTs had a large spike in both traffic and Google search interest from the end of December 2021 to the beginning of February 2022.

OpenSea’s daily volume peaked at roughly $250 million per day. According to statistics from research platform Delphi Digital, subsequent drops in daily traffic have reduced that sum down to roughly $70 million, a 72 percent decrease from its high.

On the whole, global “NFT” searches have experienced an even greater decline, with numbers down to levels last seen in early November.

The first build-up of this NFT cycle was aided by a combination of branding and marketing, including collaborations with Adidas with BAYC and Nike acquiring RTFKT, celebrity purchases, and appearances in music videos. However, as promotions have slowed significantly, the current state of NFT appears to be stationary.

The number of unique wallets purchasing NFTs- OpenSea is still rather large

Despite the grim prognosis, Delphi has previously stated that the number of unique crypto wallet purchasers is still a significant quantity. This is a solid indicator of how many people are actively participating in NFTs, so if it starts to fall, it’s a safe bet that things are starting to deteriorate.

However, the number of NFT trademark applications in the United States reached 1,263, a 421-fold increase from just three filings in 2020.

In example, the United States Patent and Trademark Office (USPTO) received 407 new trademark applications in December 2021, with the number rising to 450 in January 2022. On a daily basis, this translates to about 15 new files.

According to the filings, businesses and individuals are becoming increasingly forced to enter the blockchain space in order to protect their brands and capitalize on the sector’s potential. Especially now, when the NFT environment is creating a lot of attention, skepticism, and enthusiasm about the possible opportunities.

A variety of causes have necessitated trademark registration, including the necessity to combat counterfeit versions, which have been on the rise recently. According to OpenSea, the company determined that many of the minted collectibles on the site were plagiarized works, counterfeit collections, or spam.

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Patrick

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