NFT Market Experiences Significant Drop in September, Reaching Lowest Sales Volume Since 2021

In September, the non-fungible token (NFT) market experienced a significant drop, reaching its lowest sales volume since 2021.

NFT sales dropped to their lowest level since 2021 in September, as the non-fungible token (NFT) market continued to experience a downturn. Total sales hit $296 million, down 20% from the $373 million recorded in August.

The decline was highlighted by data from CryptoSlam, which showed that the last time monthly sales fell below the $300 million mark was in January 2021, when the total sales amounted to $109 million.

The decrease in NFT sales is part of a broader trend, with total sales dropping 81% since March, when sales peaked at $1.6 billion. Along with this drop in sales, the number of NFT transactions fell 32%, from 7.3 million in August to 4.9 million in September.

Despite fewer NFT transactions, the average value per transaction rose. The average price increased from $50.71 in August to $60 in September, marking an 18% rise. This shift shows that while fewer NFTs are being traded, the ones that are sold tend to be of higher value.

As NFT sales decline, the market is also facing growing regulatory scrutiny. The U.S. Securities and Exchange Commission (SEC) has begun targeting NFTs, with a particular focus on whether some digital assets qualify as securities.

On Aug. 28, OpenSea, a major NFT marketplace, received a Wells notice from the SEC. The notice suggested that some NFTs traded on the platform might need to be registered as securities.

In addition, the SEC recently fined Flyfish Club, an NFT-themed restaurant, $750,000 for its NFT sales. The commission argued that these digital assets might violate securities laws. However, some SEC commissioners disagreed with this action. Hester Peirce and Mark Uyeda stated that these NFTs were simply a new method of selling memberships and should not trigger securities laws.