Skip to content Skip to sidebar Skip to footer

*Your language will be set using a browser cookie.
Don’t have an account? Sign up
Forgot your password?
Artists earnings are expected to take a dip following a huge drop in trading volumes at the world’s largest non-fungible token (NFT) marketplace, OpenSea. 
According to a recent tracking report by DappRadar, OpenSea transactions fell to $9.34m on 28 August from a $2.7bn peak on 1 May. The data also shows that OpenSea users dropped to 22 140 on 5 September from about 60 000 in January.
An OpenSea spokesperson has denied the DappRaddar data, telling Fortune that it compared its record trading day to its lowest, and thus the juxtaposition was misleading.
But what is more worrisome is the broader report by Fortune, which says the trend is likely to continue in the face of a predicted ‘crypto winter’ in the second half of the year – suggesting that the NFT bubble could burst sooner than anticipated. OpenSea’s monthly trading volume from May to July still fell by 62%, Fortune said, citing crypto-tracking platform Dune Analytics.
NFTs gained prominence last year as an avenue for trading art, with musicians and other creators embracing it at the height of the COVID-19 pandemic as traditional revenue streams dwindled.
While NFTs have been touted as the future of the music industry, there is real concern that the bubble may soon burst resulting in a sharp fall in cryptocurrency value.
In April, Nigerian rapper Falz launched an exclusive NFT collection on crypto trading platform Binance. Fellow artists Oxlade, Bnxn and Rema were also due to release their collections.
Meanwhile, Nigerian producer Leriq has revealed plans to launch his NFT platform, African Valuables Collective (AVC), to enable creators on the continent to generate and sell their work. 
OpenSea, which is valued at $13.3bn, laid off about 20% of its workforce in July, as the company anticipates instability, according to CEO Devin Finzer.
“The reality is that we have entered an unprecedented combination of crypto winter and broad macroeconomic instability, and we need to prepare the company for the possibility of a prolonged downturn,” Finzer tweeted. 
See all
Disclaimer: Music In Africa provides a platform for musicians and contributors to embed music and videos solely for promotional purposes. If any track or video embedded on this platform violates any copyrights please inform us immediately and we will take it down. Please read our Terms of Use for more.

Music In Africa is

Siemens | Stiftung Goethe Institut


Leave a comment