NFT Sales Plummet in May Amid Memecoin Frenzy and High Ethereum Fees, According to DappRadar

Non-fungible token (NFT) sales have plummeted this month amid the recent memecoin frenzy and a surge in the price of Ethereum (ETH) gas fees.

According to blockchain intelligence platform DappRadar, NFT trading volume has only reached $333 million this month so far, putting May on track to be the first month in 2023 with a trading volume under $1 billion.

DappRadar says a “considerable number” of crypto traders sold their NFT holdings at a loss at the beginning of the month to participate in the memecoin mania driven by the volatile frog-themed token Pepe (PEPE).

“This has led to an uptick in on-chain activity, subsequently driving Ethereum’s gas fees above $100. This increase in transaction costs has negatively impacted the volume of low-value NFT trades on the blockchain, as traders grapple with affordability concerns.”

dappradar.com image 45
Source: DappRadar

There has, however, been a 27% increase in the average number of daily unique active wallets interacting with NFTs in May compared to April, with DappRadar attributing the bump to the fanfare surrounding the new “Milady Maker” NFT collection.

dappradar.com image 47
Source: DappRadar

Ethereum continues to be the dominant NFT chain, controlling 81% of the trading volume in May so far. It’s only responsible for 5.7% of the total number of NFT sales, however, meaning it’s being used for higher-volume transactions, according to DappRadar.

dappradar.com image 46
Source: DappRadar

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Tumblr

Surf BitcoinLinux Mix

Sponsored

Check Latest News Headlines

Check Latest Coin Values at CoinPrice.Watch

&nbsp

Get Alerts 728x90 144
Disclaimer: Opinions expressed at BitcoinLinux are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. BitcoinLinux does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is BitcoinLinux an investment advisor. Please note that BitcoinLinux participates in affiliate marketing.

Featured Image: Shutterstock/Galkin Grigory

The post NFT Sales Plummet in May Amid Memecoin Frenzy and High Ethereum Fees, According to DappRadar appeared first on BitcoinLinux.