OpenSea’s Transaction Volumes on Sharp Decline, Is NFT Popularity on A Decline?

OpenSea, the Ethereum-based largest NFT marketplace is seeing a sharp decline in the daily transaction volumes on the platform. On Wednesday, September 8, the daily transaction volume on OpenSea was less than $100 million for the first time since August 21.

Also, comparing it to the peak of August 29, the daily transaction volumes have dropped by a staggering 75% in just 10 days.

Is the NFT Popularity on A Decline?

The last month of august was phenomenal for the overall NFT market. the monthly trading volumes on OpenSea shot up to a staggering $3 billion. Furthermore, crypto-journalist Colin Wu reports that some of the top trading NFTs like Loot, CryptoPunks, and Bored Ape have dropped by nearly 100% in the last 24 hours suggesting strong declining trends. Wu reports:

“NFT popularity is decreasing. OpenSea shows that in the past 24h, Loot transaction volume -45.69%, CryptoPunks -90.81%, Bored Ape -14.58%. The floor price of CryptoPunks has fallen to 86.5 ETH, which was higher than 140 ETH before”.

These are still the early trends and we have yet to see how the market moves going ahead.

OpenSea Bugs Destroys NFTs Worth $100K

A recent bug encountered on OpenSea has accidentally destroyed approximately 42 NFT worth $100,000. Nick Johnson, the lead developer of Ethereum Name Service (ENS) was the first to raise this issue.

He noted that when he transferred an ENS name, in form of an NFT, it went to a burn address. Thus, the ENS NFT went to an address that no one can control and nobody can further move it.

The ENS service allows users to link blockchain addresses with domain names. This makes it easy to send transactions to readable names instead of complex blockchain addresses. Johnson said that he first registered the ENS name rilxxlir.eth. Even though he registered and renewed it with personal funds, it was held by another ENS account for some weird reasons. He added:

“A frantic call to @OpenSea later, it transpires I was the first and apparently only victim of a bug introduced to their transfer page in the past 24 hours, which affected all ERC721 transfers to ENS names. Ownership of rilxxlir.eth is now permanently burned”.

But in an updated message Jhonson added that OpenSea has fixed the bug. Apparently, no one else was impacted by the bug.