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Monthly value of stolen NFTs decreasing along with trader activity and transaction volume
Non-fungible tokens (NFTs) have been witnessing a reduction in value theft, as indicated by PeckShield, a blockchain security firm. This development is not surprising, given that a majority of the stolen NFTs are rapidly sold on Blur, the top NFT marketplace by trading volume.
The information from PeckShield disclosed that the NFT sector has been facing challenges with declining volumes, transactions, and unique traders. The worth of stolen NFTs in July experienced a notable decrease compared to the prior month, which corresponds with the overall diminishing interest in the NFT market.
In July, around $1.73 million in NFTs were reported stolen, reflecting a 31% drop from June and an alarming 89% decline from the peak in February, when $16.2 million worth of NFTs were taken. This considerable reduction illustrates the decreasing enthusiasm for NFTs throughout the market.
PeckShield’s examination further highlighted that a significant fraction of the stolen NFTs was swiftly sold, with half of them being purchased within just 165 minutes after the theft. Blur, the well-known Ethereum-based NFT marketplace with substantial monthly trading activity, was the main venue for these rapid transactions.
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The reduction in the value of stolen NFTs parallels the overall downturn in NFT trading volumes, which decreased by over 17% month-over-month in July. This indicates a clear decline in activity within the NFT sector.
Data from The Block’s Data Dashboard also showed that monthly transactions and unique traders on Ethereum-based NFT marketplaces have been consistently declining. This trend further corroborates the waning interest in the crypto sector.
Thus, the NFT market is undergoing a correction as the appeal of these distinctive digital assets experiences a slowdown. The drop in value theft is a favorable indicator for the market’s development, as efforts are being made to mitigate illegal activities. As a result, it may lead to a healthier and more sustainable NFT ecosystem in the future.
Nonetheless, it is essential for industry stakeholders to tackle security issues and restore investor confidence to rejuvenate the NFT sector. Furthermore, market participants and platforms may need to consider innovative approaches to rekindle interest and draw in new participants to revitalize the NFT landscape. Only time will reveal how the NFT market transforms and adjusts to these evolving dynamics.
The post Monthly stolen NFT value declining alongside traders and volume appeared first on BitcoinWorld.
