OpenSea, the popular NFT marketplace, is experiencing a significant decrease in user activity, dropping to its lowest level since 2021. Once considered a leader in the NFT space, OpenSea is now facing stiff competition from newer platforms such as Magic Eden and Blur, which are attracting more users.
According to data from Token Terminal, OpenSea’s NFT trading volumes have plummeted by 33% over the past month, reaching $89 million. The platform’s weekly user base has also fallen to approximately 21,000 traders. This decline has brought OpenSea back to its 2021 trading levels, with monthly user numbers hitting a low of 73,000 in April.
Despite the overall increase in NFT trading volumes, OpenSea is struggling to maintain its market share as competitors like Blur and Magic Eden gain traction. Sales volume on OpenSea has dropped significantly, with only 134,197 NFTs sold in April, the lowest since June 2021.
Monthly trading volumes have dipped below $100 million for the first time this year, a stark contrast to the platform’s peak monthly volumes of nearly $5 billion. This decline has impacted revenue, with fees charged by OpenSea remaining high despite rising Ethereum prices. However, these fees have not been enough to boost OpenSea’s revenue outlook, as royalty fees hit a record low in April.
The rise of Blur and Magic Eden has put pressure on OpenSea, causing it to fall to third place in the industry with a 9.5% share of the total NFT trading volume. Blur leads the market with over 67% market share, followed by Magic Eden with over 14%.
In the face of these challenges, OpenSea CEO Devin Finzer has hinted at a possible sale of the company, recognizing the difficulties the platform is facing in a rapidly changing marketplace.