Magic Eden (ME) Volume Plunges as Waning Interest Hits NFT Marketplace

ME, the token launched by Magic Eden, a leading NFT marketplace, has seen its volume plunge significantly. This crash could be linked to declining interaction with the token since its airdrop some days back.

The Magic Eden (ME) token has seen a drastic decline in volume since its launch, which might be linked to decreasing interaction with the token following its airdrop.

But trading volume is not the only aspect of the Magic Eden ecosystem that has been affected. Here's a closer look at what else has been impacted and how the price might fare in the coming days, based on on-chain analysis.

Magic Eden sees waning interest in two key areas

According to data from Santiment, Magic Eden volume was close to $5.50 billion on Wednesday, December 11. At the time of writing, the same metric had decreased to $1.58 billion, indicating a decline of roughly $4 billion.

Trading volume is the total number of buy and sell transactions for a specific cryptocurrency asset within a given time frame, usually measured daily. When the volume is high, it signifies a lot of interaction with the cryptocurrency.

On the other hand, a decrease in volume indicates reduced buying and selling, making it difficult for the price action to increase. This decline in volume, interestingly, coincides with ME's 54% price decrease since its launch on Tuesday. If the volume continues to drop, the altcoin's value may not see a quick recovery from $5.15.

Like the token's trading volume, the total NFT trade volume has also plummeted. NFT trade volume is the total value of transactions, measured in US dollars, that involve non-fungible tokens within a specific marketplace during a given measurement period.

According to on-chain data, the volume was over $3 million on December 4. At the time of writing, that value had decreased to $154,000, indicating that the number of NFTs bought and sold on the Magic Eden marketplace is no longer at the peak it was last week.

If the platform continues to experience this decline, it could also impact the demand for the ME token, which serves as the marketplace's utility token.

ME price prediction: Set to lose $5 support

At first glance, the 1-hour ME/USD chart shows that the altcoin is trading within a descending channel. A descending channel, characterized by lower highs and lower lows, indicates a bearish market trend. This pattern suggests that sellers have the upper hand, consistently driving the price down.

Considering that this is happening with the Magic Eden token volume decreasing, the price is likely to go lower. If this continues, ME’s price could drop to $4.93 in the short term.

However, this prediction may be invalidated if bulls hold the price at the support level of $5.13. In that case, the cryptocurrency's value could rise to $7.19.