OpenSea trading volumes nosedive as ETH activity falls to 2021 levels

NFT marketplace OpenSea is seeing user activity drop on its platform to its lowest level since 2021.

The NFT platform, once hailed as the leading NFT marketplace, is now struggling to hold its dominance as newer platforms like Magic Eden and Blur are capturing more activity.

Data from Token terminal show that OpenSea’s NFT trading volumes have nosedived 33% over the past 30 days, now standing at $89 million. The platform’s weekly user base has also declined to about 21,000 traders.

This drop has set OpenSea back to its 2021 trading levels, a period of low NFT activity. In April, monthly user numbers stood at around 73,000, the lowest since August 2021. At its peak, OpenSea boasted over 500,000 monthly active users, reflecting how recent shifts have challenged its competitiveness.

Despite the general increase in NFT trading volumes, OpenSea struggles as much of this activity flows to rivals Blur and Magic Eden.

Sales volume on OpenSea has also slumped, with the number of NFTs sold in April dropping to 134,197. This figure marks the lowest since June 2021 and is 19 times less than the peak when the marketplace facilitated the sale of over 2.5 million NFTs in a single month.

Monthly trading volumes have similarly shrunk, slipping below $100 million this year for the first time. During its heyday, OpenSea’s monthly volumes neared $5 billion. This decline has significantly affected revenue, with fees charged remaining high despite increasing Ethereum prices. Yet, these fees have failed to improve OpenSea’s revenue outlook, as royalty fees hit a record low in April.

The rise of Blur and Magic Eden has pressured OpenSea, which now ranks third in the industry, holding about 9.5% of the total NFT trading volume. Blur dominates with over 67% market share, while Magic Eden follows with over 14%.

Amid these challenges, OpenSea CEO Devin Finzer has hinted at a possible sale of the company, acknowledging the struggles the platform faces in a rapidly evolving marketplace.