Devin Finzer, CEO of OpenSea, the world’s largest non-fungible token (NFT) marketplace, has attempted to differentiate NFTs from cryptocurrencies as the industry faces challenging conditions.
Finzer stated in a report that recent setbacks in the cryptocurrency industry were caused by the bankruptcy of the FTX exchange in November, which contributed to a decline in the value of digital assets.
NFTs, based on the same blockchain technology as cryptocurrencies, became a hype-fueled market over the past two years, increasing the trading volume on marketplaces like OpenSea; recent data suggest a significant decrease in trade volume.
According to “rchen” on Dune Analytics, monthly trade volumes of Ether on OpenSea fell from a peak of $4.9 billion in January of last year to $253 million in November, a 95% decrease.
Similarly, the daily volume of NFTs sold in Ether on the marketplace decreased from a peak of 2.3 million in January to 740,000 last month, a 68% decline.
Devin Finzer stated:
“NFTs do not exist in a vacuum, there is the overall macro climate which has changed dramatically, and that affects consumer spending and the broader crypto climate, which is experiencing a winter right now.”
Finzer argued that NFTs still have a promising future because he believes consumers will continue to pay real money to buy digital photos and display them in their homes and online virtual spaces. Earlier this month, OpenSea barred artists and collectors from Cuba, citing U.S. sanctions as the reason for this action.
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