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The Number of Unique Traders in the NFT Market has Dropped Dramatically

The market of non-fungible tokens (NFTs) witnessed remarkable progress powered by the spike in the decentralized finance (DeFi) sector witnessed in recent years.

The NFT space has been tremendously boosted by the fields like the Metaverse and GameFi. Nonetheless, the former position of this sector was just limited to the collectors of digital assets.

The NFT Traders Dramatically Decline on All Marketplaces

Just a couple of years back, since the huge sale of Beeple NFT (equaling up to $69M), several other newly emerging artists with great skills remained successful in the expansion of this world. Along with this, many ventures also expressed their interest in the respective market and became a part of it.

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As a consequence of that, the industry of non-fungible tokens saw a remarkable development, collecting several billion dollars. This took place notwithstanding the bear market that engulfed the crypto industry back in the year 2022.

Nonetheless, the enormous amount of gains seen by the NFT industry could be rapidly draining amid the boom of meme tokens.

As per aggregate market data that the Dune dashboard provided, the number of the latest addresses on the prominent marketplaces of NFTs has dropped to a great extent.

In this respect, the NFT ecosystems including LooksRare, OpenSea, and Blur have recently dipped during the recent days. The latest consumers on the respective platforms were just 7,805 as of the 19th of April.

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The respective figure is considered to be the lowest sum of the exclusive NFT clients witnessed since 2021’s July. It is noteworthy here that the sales of non-fungible tokens across diverse marketplaces have additionally slumped in recent days. Just 16,149 NFT sales were reported on the 19th of this month.

Such a momentous dip in the non-fungible token operations has been credited to many factors. These things take into account the increased gas charges amid minimized attention given to digital collectibles. In addition to this, several other cost-effective crypto trades take into account exclusive meme coins such as PEPE and others.

An NFT-related research center named “Sealounch” noted that its thesis points toward the macroeconomic conditions that are potentially responsible for the current situation.

As per the platform, at a time when the NFT consumers are going through a general decline, liquidity, tax payment, as well as gas prices-related issues are the things that play a significant role in bringing about the current uncertain scenario.

Ethereum Remains Afloat with Steady Progress

Nonetheless, it added, the modification in the trading pattern – like a drop in airdrop farming-related trading – is not to be blamed for that as the aforementioned factors are. As per the reports, both the small and the heavy non-fungible token traders have considerably plunged in the last few days.

After that, the NFT markets could make endeavors to maintain their position in the next months as the traded volume and income revenues are declining.

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The NFT sector has seen a fall in innovation when as opposed to the rest of the blockchain products. However, the platform of Ethereum remained effective to remain afloat as an NFT center with a steady development in its traded volume during the recent 30 days.

As mentioned by “@hildobby_” (an NFT data analyst) on Twitter, the trading gas and minting charges are responsible for low NFT users and trading volume.


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Hassan Mehmood (Saudi Arabia)

Hassan is currently working as a news reporter for Tokenhell. He is a professional content writer with 2 years of experience. He has a degree in journalism.

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