NFT Trading Hits Lowest Point Since October 2023 Amid Crypto Rally

• May 2024 saw the lowest NFT trading volumes since October 2023, impacting the Ethereum, Bitcoin, and Solana ecosystems.
• Top NFT projects like BAYC and CryptoPunks have felt the market’s dip, with BAYC’s trading hitting its lowest since August 2021.

The global cryptocurrency market is displaying a surge, with Bitcoin (BTC) and Ethereum (ETH) reaching new highs. Bitcoin has soared to new peaks, trading between $68,000 and $70,000, while Ethereum is approaching the $4,000 mark. The excitement around these gains is heightened by the anticipation of Bitcoin and Ethereum ETF approval, which has grabbed significant attention.

However, amidst this market rally, it’s important to note that May displayed a significant downturn in the trading volumes of NFTs and Ordinals, hitting their lowest levels since October 2023. This decline is evident across major ecosystems, including Ethereum, Bitcoin, and Solana, all witnessing substantial drops in activity. Ordinals represent the initial version of nonfungible tokens (NFTs) minted on the Bitcoin network.

Floor prices have been resistant to this trend. According to NFT analyst @waleswoosh X’s post, leading NFT projects across various chains have seen significant value decreases over the past 30 days.

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For instance, Bored Ape Yacht Club (BAYC) has showcased a sharp drop of $1,927.58, while other projects like Pudgy Penguins and Nodemonkes have fallen by $1,457.31 and $8,794.06, respectively. Bitcoin Puppets saw a significant reduction of $11,942.25, and MadLads and SMB also reported declines of $2,986.08 and $1,989.64, respectively.

Further, monthly Ordinals sales plummeted by 70% to $193 million, marking a significant decline from December, which recorded the highest sales in Ordinals history at $868 million.

Moreover, lower trading volume on the Ethereum blockchain compounded the drop in NFT floor prices. High-profile collections such as BAYC and CryptoPunks have faced a downturn. While the daily sales have varied from 8 to 67 NFTs each day since early May, the collection’s floor price has steadily declined.

BAYC, in particular, saw its floor price on OpenSea plummet to its lowest since August 2021, down by 90%, hitting 11.747 ETH ($45290) on May 28.

Despite the overall crypto market boom, the NFT sector’s downturn highlights the complex dynamics at play, where surging cryptocurrency prices do not necessarily shift to solid NFT performance.