OpenSea, once the largest non-fungible token (NFT) marketplace by trading volume, is experiencing the most difficult period since its major success in 2021 amid the NFT boom.
Data from Token Terminal shows that the number of weekly traders fell to 21,400 at the end of April, which is the lowest level since July 2021. Meanwhile, monthly users fell to 74,400 in April, the lowest since August 2021.
During its glory days, OpenSea had over 500,000 active users per month.
The number of NFTs sold in a month fell to its lowest level since June 2021. In April, 134,197 NFTs were sold on the marketplace, which is about 19 times lower than its best month, when over 2.5 million NFTs were sold.
Meanwhile, monthly volumes are maintaining at a low level, breaking below $100 million for the first time since last September. In January 2022, OpenSea’s monthly volume almost hit $5 billion.
The decline in activity affects the platform’s revenue. While platform fees are a bit higher compared to the second half of 2023 due to an increase in the ETH price, royalty fees fell to a record low in April.
OpenSea once dominated the NFT space, but competition from Blur and Magic Eden has added pressure to its leading position. On top of that, the NFT market has been in a bearish mood since its success in 2021-2022. The market has revived mainly thanks to Bitcoin Ordinals, which introduced a way to inscribe images and texts directly on the Bitcoin mainnet.
Today, OpenSea is the third-largest NFT marketplace by trading volume, accounting for about 9.5% of NFT trading volumes. Blur is by far the largest NFT ecosystem, with over 67% market share, while Magic Eden comes second with over 14%.
Earlier this year, OpenSea CEO Devin Finzer admitted that the platform was open for sale amid declining NFT volumes.
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