Quick take:
- Coinbase is putting on hold further NFT drops on its marketplace.
- However, The crypto exchange’s NFT arm maintains that it is not shutting down.
- Coinbase NFT has been experiencing a decline in numbers including transaction volume, the number of transactions and users.
Coinbase NFT is halting new NFT drops for creators. The crypto exchange platform’s NFT unit announced via Twitter that it will instead be focusing on other tools and features that creators have asked for.
Coinbase maintains it is not shutting down its NFT marketplace. “To be clear: We are not shutting down the Coinbase NFT marketplace,” the company wrote.
The platform has been experiencing a consistent drop in numbers including users, the number of daily transactions and the sales volume since September last year.
After experiencing a significant surge in the NFT transaction volume in September 2022, trading activity on Coinbase NFT has since plummeted, with some days experiencing zero sales.
For instance, according to a Dune Analytics dashboard prepared by Cryptuschrist, the platform registered 0.1 ETH in sales volume over the past 24 hours.
The data also shows that Coinabse NFT only managed a transaction volume of 0.9 ETH over the past seven days, equivalent to about $1,500. The platform’s all-time sales volume stood at 4,455 ETH, approximately $7.47 million.
Although Coinabse NFT has about 16,618 all-time users, the platform has witnessed a significant decline in the number of daily and weekly active users, with buyers and sellers falling to 22 and 32, respectively in the week ending January 30, 2023.
The platform has registered 50,775 in all-time sales, which puts it several levels below competiting NFT marketplaces. Recently, daily sales have plummeted to just 28 as of February 2, 2023.
Although Coinbase NFT sales plummeted further in January, that was not the case for the industry overall. NFT sales increased by about 40% in January compared to December 2022, pushing the total transaction volume close to $1 billion.
This rise was primarily driven by Polygon NFTs, which surpassed Ethereum NFTs traded on OpenSea last month with more than 1.5 million NFTs. In December, OpenSea also saw more than 1.3 million MATIC NFTs change hand. Overall, the number of Ethereum NFTs on OpenSea registered a volume of $444 million.
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