The NFT sector has gained more popularity and worldwide acceptance. The concept emerged after the decentralized finance (DeFi) frenzy, creating a loud buzz with its value proposition.
Notably, top venture capital firms, Paradigm and Andreessen Horowitz embraced NFT, spiking its recognition, usage, and investments. However, the amount of holders shorting tokens currently is rising. NFTGo reports that the total number of sellers in April 2023 exceeded the number of buyers.
Sellers Dominating The Non-Fungible Tokens Market In 2023
NFTGo, an analytics platform, reveals that there were just 7,907 buyers compared to the 8,641 sellers on April 26. Previously, the market fell to its second lowest point in the last 12 months on April 19 with just 5,893 buyers.
It closely mirrors the June 18, 2022, low value of 5,343 buyers. These figures hint at a dropping demand for NFTs which could reduce the value of NFTs for sellers.
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The co-founder of Canary Labs, Ovie Faruq, reacted to the buyer’s decline in a tweet. He stated that daily traders ranged from 20,000-60,000 in the past year. However, in the last few days, there has been a decline. Faruq believes that the market is not functional at the moment.
SVB Collapse Reason Behind Reduced NFT Trading Volumes
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