OpenSea, once the giant of NFT marketplaces, now finds itself grappling with dwindling user engagement reminiscent of 2021 lows, as emerging platforms like Magic Eden and Blur seize the spotlight.
According to data from Token Terminal, OpenSea’s NFT trading volumes have plummeted by 33% over the past month, plummeting to $89 million.
Concurrently, the platform’s weekly active user base has dwindled to approximately 21,000 traders.
This downturn marks a regression to OpenSea’s 2021 trading metrics, signalling a stark contrast to its former glory days.
In April, monthly user figures scraped the bottom at around 73,000, mirroring levels last seen in August 2021.
This stands in stark contrast to its zenith, when monthly active users surpassed 500,000, underscoring the recent headwinds challenging its market dominance.
Despite the broader surge in NFT trading, OpenSea struggles to retain its market share, as competitors Blur and Magic Eden siphon off significant activity.
The decline extends to sales volume, with only 134,197 NFTs sold in April, marking the lowest tally since June 2021 and a mere fraction of the peak month, when over 2.5 million NFTs changed hands.
Monthly trading volumes have also tumbled, slipping below $100 million for the first time this year, a far cry from its heyday when volumes flirted with $5 billion.
This sharp downturn has dealt a severe blow to revenue, as high fees persist despite Ethereum’s price surge.
However, these fees have failed to bolster OpenSea’s revenue prospects, as royalty fees hit a record low in April.
The ascendance of Blur and Magic Eden has further compounded OpenSea’s woes, relegating it to third place in the industry with a meagre 9.5% of the total NFT trading volume.
Blur currently commands a commanding 67% market share, with Magic Eden trailing at over 14%.
Amid these challenges, OpenSea’s CEO, Devin Finzer, has hinted at the possibility of a company sale, acknowledging the platform’s struggles in an increasingly volatile marketplace.
