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Weekly NFT trading volume falls from $6.2bn to $114.4m in past year

By Alara Jordan

Edited by Charlie Mellor

14:11, 29 September 2022

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Representation of a digital NFT gallery
NFTs have had a lacklustre year compared with the highs of 2021 – Photo: Shutterstock

Trading volumes for non-fungible tokens (NFTs) and digital assets have fallen considerably, reporting a 97% drop in activity according to recent data compiled by Dune Analytics.

Weekly trading volumes fell from $6.2bn to $114.4m since January, signalling a significant drop off in interest.

Despite being one of the more dynamic aspects of the crypto and Web3 industry in the last few years, NFTs have had a relatively lacklustre year compared to 2021, which saw digital collectibles surge in interest as well as mainstream adoption among crypto enthusiasts.

Transaction volume on popular NFT marketplaces also suffered with platforms such as OpenSea, the largest NFT trading platform by volume, recording a 99% decline in volume since its record high figures in May, according to DappRadar.

User wallets increase despite market slump

At a time when trading volumes for NFTs and the wider crypto sector have dropped significantly, the number of consumer wallets owning at least one NFT has spiked –surging upwards of 6.14 million, compared to around 3.36 million recorded at the end of January.

ETH/USD

1,236.15 Price
-2.050% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 5.00

BTC/USD

16,852.30 Price
-1.170% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 60.00

DOGE/USD

0.10 Price
-4.350% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.0012155

LUNC/USD

0.00 Price
-3.070% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee -0.0500%
Overnight fee time 22:00 (UTC)
Spread 0.00000687

What makes the data interesting is that despite the overall crypto market downturn, a plethora of new brands are still emerging on scene, including Tiffany’s collaboration with CryptoPunks, luxury retail brands such as Prada and Gucci launching digital collectibles, and Nike’s acquisition of popular digital brand RTFKT.

Nike (NKE)

According to Chainalysis, as of 1 May, collectors have sent over $37bn to NFT markets in 2022, a figure that was on pace to surpass the $40bn that was recorded in 2021.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

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