NFT marketplaces were hit hard in the crypto market crash of May which led to billions of dollars wiped off the sales volume of digital collectibles.
NFT marketplaces continue to make attempts to recover from the plunge in investor interest in digital collections.
According to Be[In]Crypto research, NFT marketplaces’ total volume was around $4 billion for the month of May. Although this figure looks impressive, monthly volumes from April 2022 were in the region of $7.18 billion.
Source: NFT Marketplace Monthly Volume by the Block Crypto
Much of the volume came from OpenSea with approximately $2.6 billion. Other marketplaces that made significant contributions included Magic Eden, LooksRare, Solanart, Art Blocks, SuperRare, MakersPlace, Nifty Gateway, Foundation, and Async Art.
NFT marketplaces are digital platforms for buying and selling non-fungible tokens. The platforms help lovers of digital collectibles store as well as display their NFTs for fiat or cryptocurrency.
In January 2022, total sales volume was approximately $16.57 billion with LooksRare leading the way with $11.1 billion for the month. May’s volume was $12.57 billion less than January’s—a 75% decline in just four months.
Why the sinking NFT marketplace volume?
A decrease in investor interest can be credited for the waning volume of NFT marketplaces.
CryptoPunks had an average sale value of $136,800 (10-month low) while Axie Infinity sunk to $17.57 (5-month low) for average sale values in May. Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) had average sales values of $218,740 (6-month low) and $57,580 (5-month low) respectively.
OpenSea’s volume for May was $890 million more than April ($3.49 billion), $980 million above February ($3.58 billion), and $2.37 billion over that of January 2022.
Source: OpenSea Monthly Volume Chart by Dune Analytics
LooksRare’s May volume of $1.06 billion was 67% below April’s $3.31 billion, 64% under March’s $3.02 billion, 85% less than February’s $7.41 billion, and 90% beneath January 2022’s $11.1 billion.
Magic Eden is one of the biggest NFT marketplaces and recorded around $292.1 million in May. This was a 23% decline in January’s volume of approximately $380.87 million.