There was a huge surge in interest in NFTs throughout the summer of 2021. After a year, the NFT market’s trading volume has plummeted.
Due to the lowest trading volumes in a year and the growing epidemic of NFT hacks, interest in NFTs has decreased along with the overall cryptocurrency market.
The non-fungible token market is finding it difficult to sustain the exponential growth it saw during the 2021 bull market. Trading volumes have dropped precipitously recently and are already at their lowest levels since July 2021, according to data from prominent NFT trading sites like OpenSea.
The daily trade volume for OpenSea shows a more pronounced fall in activity. Daily volumes in June and July were closer to $20 million after May 1 saw $543 million in deals, the day after Yuga Labs’ eagerly anticipated Otherside drop went online.
The quantity of distinctive NFT transactions on OpenSea furthers the waning interest. Transactions consistently exceeded 150,000 per day in May and the first few days of June. They haven’t been able to surpass 75,000 since more than a month ago.
Even if other more recent exchanges have posed fierce competition for OpenSea, it is evident that total trade volumes are still declining. The top two exchanges after OpenSea, X2Y2 and LooksRare, have not been able to make up the difference with their recent trading volumes.
According to the report from TRM Labs, a company that specializes in digital asset compliance and risk management, hacks related to NFT minting scams that were used to compromise Discord accounts climbed by 55% in June 2022 compared to the prior month.
TRM Labs investigator Monika Laird said:
“Since 2022, we’ve seen these compromises happening at scale, specifically on Discord.”
Through its Chainabuse reporting platform, TRM Labs claims to have received over 100 allegations of Discord channel hacking in the previous two months. According to Laird, the attacks take place every week and frequently target ERC-721 tokens, which are a non-fungible token standard on the Ethereum network.
Laird noted that the relationship between wallets and common consolidation sites (exchanges, mixers) on the on-chain side shows that the same individuals are likely behind the majority of these attacks.
“The NFT community is the target of a persistent threat group that our security team has been monitoring. We predict that they will soon use compromised social media accounts to undertake a coordinated attack against a number of communities. Please be cautious and be safe.”