April Sees a 30% Decline in Cryptocurrency Trading Volume and Non-Fungible Token (NFT) Sales

During April, the cryptocurrency and non-fungible token (NFT) markets experienced notable downturns, which may be indicative of a diminishing enthusiasm for these digital assets.

With a reduction in trade volume, leading entities and cryptocurrency exchanges have encountered significant drops in their transaction numbers, pointing to a potential reset of market conditions and a more cautious stance among investors.

Decline in Crypto Exchange Activity and NFT Sales

Reports from centralized trading platforms demonstrate a sharp decrease in crypto spot trading volumes, which fell by 35.7% from the March figure of $2.49 trillion to just $1.6 trillion.

The dominant exchange, Binance, was responsible for 43.7% of this volume, which equates to around $699.25 billion.

Similarly, the NFT marketplace took a hit with sales decreasing to $1.15 billion in April, a drop of 31.26% from the previous month.

It wasn’t only sales that suffered; the number of active buyers and sellers within the NFT space also saw a pronounced decline. Buyer engagement slipped by over half, down 51.88%, and the selling activity retreated by 45.72%, showcasing reduced market interest.

Several key blockchain networks known for NFT trades saw major dips. Notably, Ethereum and Solana both experienced precipitous drops in NFT sales.

Ethereum’s NFT trades saw a contraction of 56.8%, and Solana’s NFT sales fell 39.4%. This downtrend was mirrored across various networks, with the exception of a few, like Immutable X and Avalanche, which defied odds with upticks in NFT trading.

Discover more: Top 7 NFT Marketplaces to Watch in 2024

Yet, certain Bitcoin-centric NFT compilations managed to break the downward trend, with April successes. Collections like the Bitcoin Puppets and the WZRDs based on Bitcoin exhibited value increases of 2,064.97% and 25,796%, respectively.

“Considering Ethereum NFT collections predominantly back NFT lending due to the Blend-Blur synergy, Bitcoin Ordinals’ rising popularity and effect on NFT lending is notable,” according to a statement from researchers at CoinGecko noted.

This points towards a possibility that specialized collections can still generate considerable intrigue and attain lofty valuations despite the broader market’s downward trajectory.