As the world’s biggest non-fungible token (NFT) marketplace, OpenSea garnered a daily active user volume of $5 billion. It was keeping pace with this impressive usage level over the previous week by generating more than $1.3 billion in total user volume. But the data provided by Dune Analytics show that the number of active users using the token marketplace has plummeted by over 30 percent.
The data has led the industry to fret because it indicates that the NFT space could be undergoing a market correction. There’s also a possibility that the trading activities of investors and token collectors are shifting to another marketplace. OpenSea’s closest rival, LooksRare, is just a month old and has managed to generate close to $3.49 billion in a week. However, the persistence of wash-trading issues has caused its trading volume by 3 percent.
In January 2022, OpenSea marketplace was hacked, causing it to lose 332 Ethereum (ETH), which was $780,200. Peck Shield, a blockchain security company, detected the hack. The security company aims to beef up the privacy, usability, and security of the entire blockchain ecosystem, making it more robust and seamless.
The decrease in OpenSea’s user volume could be because of the launch of Hape Prime, which is a collection of 8,200 fashion-forward apes in 3D. KaraFuru, launched on 4th February, has been able to manage a 4 ETH ($12,506.36) slab. Not to forget, the increase in sales of CloneX and HypeBears could also be a reason why OpenSea’s user volume dropped, causing the NFT prices to decrease.