Speculators will flock to alternative solutions when cryptocurrencies remain subject to an ongoing bar trend. NFTs present the go-to opportunity in this regard, even though the volume on OpenSea tells a different tale. June 2022 may be the worst month since July 2021 if this trend continues.
OpenSea Is Struggling
One has to remember OpenSea supports multiple blockchains, with Ethereum being the main chain, followed by Polygon and Solana. The popular NFT marketplace may integrate support for other networks, although that has not been confirmed at this time. For now, we will focus on these three blockchains and scaling solutions, as they are the only verifiable metrics to use.
OpenSea volume on Ethereum has fallen off a cliff in June 2022. The month is nearly halfway, and the platform has yet to surpass 373 million in monthly volume. That may seem substantial, but one has to consider that the marketplace generated nearly $2.6 billion last month. It seems unlikely OpenSea will come close to that level over the coming weeks.
Unfortunately, the daily trading volume on OpenSea is also bleak. It has been on a decline for several weeks now and, despite a minor surge yesterday still lacks any real excitement. Generating roughly $20 to $25 million per day is still pretty decent, but t is far from what the platform has proven to be capable of. Then again, falling crypto prices will significantly affect the USD volume of this platform, and would require substantially more overall sales volume to make up for it.
The sales volume itself, however, has not changed much. In fact, June 2022 looks like a very solid month, albeit not necessarily for a positive reason. It appears people are cashing out their NFTs to preserve some portfolio liquidity. Nearly 968,000 NFT sales have been recorded on OpenSea this month, indicating it will easily surpass May’s volume.
What About Polygon and Solana?
It is not too surprising to see the NFT volume on Polygon follow a similar path to Ethereum. There is a significant drop-off in June 2022, although that decline began in February. OpenSea volume on Polygon has peaked in January and drifted lower and lower since going over 50% lower by May 2022. June is not looking much better, with just over $3.71 million in monthly volume so far.
Solana offers a bit more long-term hope. It is the only of three supported networks to yield a bump in daily NFT transactions, and its daily volume looks pretty decent. That said, both Polygon and Solana are hampered by the wild price fluctuations of MATIC and SOL, creating a skewed outlook.
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