The post NFT Sales Drop 20% in September Amid Growing Regulatory Scrutiny appeared on BitcoinEthereumNews.com.

NFT Sales Plummet 20% in September Amid Regulatory Scrutiny September proved to be another tough month for the NFT market, with sales dropping by 20% compared to the previous month, according to CryptoSlam data cited by Cointelegraph. Total monthly sales dipped to $296 million, down from $373 million in August. This decline extends the downturn seen since March, when NFT sales reached a peak of $1.6 billion. The sharp drop in transaction volumes and increased regulatory pressure from U.S. authorities have further dampened the market’s performance. The NFT space, once hailed as the frontier of digital collectibles and ownership in the art, gaming, and entertainment sectors, continues to face mounting challenges. As sales and transaction volumes slump, regulators are zeroing in on platforms and marketplaces, putting the industry in an uncertain position. Key NFT Market Data for September The latest CryptoSlam data paints a sobering picture for the NFT market. While total sales dropped significantly, transaction volumes saw an even steeper decline: Sales: $296 million, down from $373 million in August (a 20% drop) Transaction volumes: 4.9 million, down from 7.3 million in August (a 32% drop) Average transaction value: $60, up 18% from the previous month Although the average value of NFT transactions rose by 18% to $60, the overall decline in activity indicates that investors are becoming more cautious, particularly amid the increasing regulatory scrutiny from U.S. authorities. Regulatory Pressure: A Key Factor The decline in NFT sales and transaction volumes coincides with increased regulatory action targeting the NFT market. U.S. regulators, including the Securities and Exchange Commission (SEC), have ramped up their scrutiny of NFT platforms, with OpenSea and other major entities facing investigations and enforcement actions. The SEC has raised concerns about NFTs potentially being classified as securities, which would subject them to much stricter regulations.…

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Filed under: News - @ September 30, 2024 9:19 pm