According to data, the trade volume for non-fungible tokens (NFTs) plummeted by 74% between May and June.
Trade volume in May was $4 billion, while it was $1.04 billion in June.
This year’s previous low point was 48 percent, reached in March and February. The most significant month-over-month decline in NFT marketplace trading volume has occurred recently.
Aas per data, OpenSea led the market for NFTs in June with $696 million in total volumes. It represented 67% of the total volume for the month.
Problems Ahead for OpeanSea
Magic Eden, a competitor of OpenSea, currently makes up nearly 10% of the transaction volume, up from 0.1 percent at the beginning of 2022. Despite volumes dropping, the market for Solana-based NFTs has grown a market share versus OpenSea after that company started supporting Solana in April 2022.
A Wall Street Journal ( WSJ ) report states that the non-fungible token (NFT) market plans to fire 20%, or one-fifth, of its workers.
The company currently has 230 employees, which implies that 57 people were let go.
Investors have begun selling off their most speculative assets as the Federal Reserve has shifted away from its easy-money policies. According to CoinMarketCap, the market worth of cryptocurrencies has fallen from about $3 trillion in late 2021 to less than $1 trillion.
OpenSea, one of the largest NFT markets, indicated that although it now employs 230 people, 57 layoffs may be necessary.
Chief Executive Devin Finzer said that the business would provide severance and healthcare benefits to anyone laid off through 2023 in an internal communication to employees that was shared on Twitter. Finzer added, “Accelerated stock vesting will also be available.”
Finzer CLAIMS that “the changes we’re doing today position us to retain many years of the runway in various crypto winter scenarios (5 years at the present volume) and offer us a high degree of confidence that we only need to go through this process once.”