The decline in NFT trade volume in May is being driven by the interest in meme coins

Sales of non-fungible tokens (NFTs) have fallen this month due to rising Ethereum (ETH) gas prices and a shift in focus to cryptocurrencies themselves.

NFT trading volume reached $333 million in May, making May the first month of 2023 with a trading volume below $1 billion, according to DappRadar. Earlier this month, a large number of crypto traders sold their NFTs for free to join the meme-cryptocurrency mania led by the Pepe (PEPE) token, according to DappRadar.

Dogecoin
Dogecoin

This led to an increase in network activity, raising Ethereum gas prices above $100. The increase in transaction costs has a negative impact on the volume of NFT transactions.

However, the average number of unique wallets that interact daily with NFT increased by 27% in May compared to April, and DappRadar explains this jump in the progress of the new “Mlady Maker” NFT collection.

NFT Trading
NFT Trading

Ethereum continues to be the largest network for NFT, controlling 81% of the transaction volume in May. However, according to DappRadar, this blockchain represents only 5.7% of the total number of NFT transactions, indicating high-value transactions.

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