NFT Trading Volume in July Dropped 29%, DappRadar Says

The NFT market had a rough month in July as the trading volume for NFTs decreased by 29% to $632 million in July.

This decline follows a previous report by DappRadar indicating a 38% drop in NFT trading volume during the second quarter of this year, according to BeInCrypto.

In June, the company experienced a 44% decrease in the number of unique daily active wallets in the NFT sector. The previous month, in May, DappRadar observed a 44% decline in NFT trading volume. This month, the market has continued to shrink, with DappRadar reporting a 19% drop in the number of daily active wallets to 70,338, accounting for only 4% of the industry’s overall activity.

The NFT market was not the only sector that suffered in July. The total value that the DeFi sector holds has decreased by 2.27% and currently stands at $75.91 billion. Unfortunately, this decline in DeFi’s value is not expected to bring any happiness to NFT traders.

Blockchain analyst Sara Gherghelas attributed this drop to many reasons, including the overall market downturn since the second half of 2022, the price of Bitcoin and Ethereum, and the wild hype and speculation around NFTs that led to many scams and rug pulls.

Some people have questioned the value of NFTs, arguing that they are simply digital assets that can be easily copied. As a result of these factors, the NFT market has cooled significantly in 2023. The total trading volume of NFTs has fallen by more than 90% since its peak in January 2022. The average price of an NFT has also fallen by about 70%, according to Gherghelas.