The once-bustling market for Ethereum-based NFTs has hit a new low, with the number of daily traders dropping below 4,000 for the first time since June 2021.
This decline marks a significant fall from its peak in February 2022, when over 80,000 traders were active daily.
Despite some exciting announcements, such as Adidas teaming up with Stepn for a new NFT collection and the forthcoming 2025 release of the Pudgy Penguins game, the overall sentiment in the NFT sector remains bleak.
High-profile failures, including the unsuccessful Coachella NFT VIP passes and the shuttering of Starbucks’ Odyssey Beta NFT program, have contributed to the downturn.
Additionally, the resale of a Bored Ape NFT once owned by Kevin Hart at an 83% loss and the plummeting trading volume of Donald Trump’s NFT collection ahead of his trial has further highlighted the market’s struggles.
Even though some collections continue to capture public interest, the majority are experiencing reduced trading volumes and falling floor prices.
The much-anticipated Bitcoin Ordinals have also seen a decline in activity, overshadowed by the rise of Runes and meme coins.
Ethereum’s NFT marketplace volumes have steadily decreased since the start of the year.
In May, the total volume failed to reach $500 million, a stark contrast to the billion-dollar trades during the 2021/2022 bull market.
The decline in Ethereum NFT trading could be attributed to the rise of more affordable alternatives that have siphoned off activity.
Although Ethereum still hosts the majority of top-tier NFT collections, its dominance is waning.
Reviving the NFT market might require the introduction of a new, popular collection or a marketplace with enticing incentives. Until then, the future of Ethereum’s NFT trading remains uncertain.
