Trading volumes on OpenSea plummet as Ethereum activity drops to lowest levels in 2021.

OpenSea, the NFT marketplace that was once hailed as the leader in its field, is currently experiencing a decline in user activity, reaching its lowest level since 2021. This loss of dominance can be attributed to the rise of newer platforms like Magic Eden and Blur, which are attracting more user engagement.

According to data from Token Terminal, OpenSea’s NFT trading volumes have plummeted by 33% in the past 30 days, now totaling $89 million. Furthermore, the platform’s weekly user base has dropped to approximately 21,000 traders.

This decline has brought OpenSea back to its 2021 trading levels, a time when NFT activity was relatively low. In April, the monthly user count was around 73,000, the lowest since August 2021. At its peak, OpenSea boasted over 500,000 monthly active users, highlighting the challenges it faces in remaining competitive.

Despite the overall increase in NFT trading volumes, OpenSea is struggling as much of the activity is now flowing towards its rivals, Blur and Magic Eden. The sales volume on OpenSea has also taken a hit, with the number of NFTs sold in April dropping to 134,197. This figure represents the lowest number since June 2021 and is 19 times less than the peak when over 2.5 million NFTs were sold in a single month on the platform.

Monthly trading volumes have similarly declined, falling below $100 million for the first time this year. During its prime, OpenSea’s monthly volumes reached nearly $5 billion. This decline has had a significant impact on the company’s revenue, as fees remain high despite increasing Ethereum prices. However, these fees have failed to improve OpenSea’s revenue outlook, as royalty fees hit a record low in April.

The emergence of Blur and Magic Eden has put pressure on OpenSea, which now holds the third position in the industry, accounting for approximately 9.5% of the total NFT trading volume. Blur dominates the market with over 67% market share, while Magic Eden follows with over 14%.

In light of these challenges, OpenSea’s CEO, Devin Finzer, has hinted at the possibility of selling the company, acknowledging the struggles the platform faces in a rapidly evolving marketplace.