Seems naked: OpenSea turns into NFT ghost town after volume drops 99% in 90 days

A lingering debt crisis on BendDAO lending platform is also increasing the risks of the NFT bubble bursting.

Market analysis

OpenSea, the world's largest non-fungible token (NFT) market, has seen a substantial drop in daily volumes as fears of a possible market bubble grow.

OpenSea volume drops to yearly low

Notably, the market processed nearly $5 million in NFT transactions on August 28, about 99% less than its record high of $405.75 million on May 1, according to DappRadar.

Users, volume and OpenSea transactions. Source: DappRadar

Massive declines in daily volumes have coincided with equally drastic declines in OpenSea users and their transactions, suggesting that the value and interest in blockchain-based collectibles have been declining over the past few months.

This is even more visible in the lower price floors - the minimum amount one is willing to pay for an NFT - of major digital collectible projects.

For example, the floor price of Bored Ape Yacht Club fell 53% to 72.5 ETH on August 28 from a high of 153.7 ETH on May 1.

BAYC floor price throughout history. Source: CoinGecko

Similarly, the floor price of CryptoPunks, another top NFT collection, has fallen nearly 20% from its July high of 83.72 ETH .

The NFT bubble bursts

NFT prices are quoted in the native currency of the blockchain they are launched on. Thus, a digital collectible created on Ethereum will be purchased using Ether (ETH), which also means that NFT prices will drop if the market valuation of ETH crashes.

A bear market in ETH seems to be one of the main drivers of poor NFT statistics. Notably, the price of one Ether fell by $4,...