The trading volume on OpenSea fell by 89% in six months. Analysts attribute the drop in marketplace figures to the increasing competition in the NFT market, which managed to reduce OpenSea’s share by 25%.
According to DappRadar analysts, the trading volume on the NFT marketplace OpenSea in July 2022 was about $500 million, although this figure was at $4.5 billion at the beginning of the year.
At the same time, a sharp decline began in June, when the site lost 73% of the trading volume over a month, despite a single burst of trading activity. On June 13, 2022, OpenSea saw a 173% increase in trading volume due to a sharp drop in prices of the popular NFT collections Bored Ape Yacht Club and CryptoPunks.
Analysts of DappRadar connect the decrease of OpenSea indicators with the growing number of competitors in the market. So, back in May of this year, the marketplace dominance was 84%, and this figure fell to 58.6% in July.
Among OpenSea’s main competitors are:
- X2Y2. The site’s sales volume in July reached $168 million, while the dominance of the NFT marketplace rose to 18.7%.
- Magic Eden. In July, this platform accounted for 7.8% of transactions in the NFT market, with 90% of Solana blockchain token sales taking place there.
The drop in OpenSea’s figures may be due not only to a global decline in trading turnover in the NFT market, but also to an increase in hacking attacks on NFT projects. In February this year, a phishing attack on OpenSea allowed hackers to steal about $3.4 million worth of NFTs.
Analysts of DappRadar assume that in the coming months, OpenSea will be able to maintain its leadership in the sector thanks to updating UI and the launch of the decentralized protocol Seaport.
