LooksRare Monthly NFT Trading Volume Flash Crashes 97% In October: What’s Next?
October 26 2023 - 4:00PM
NEWSBTC
The monthly trading volume of LooksRare, a decentralized
non-fungible token (NFT) and digital collectible marketplace, is
down 97%, crashing from $71.9 million registered in September 2023
to just $2.1 million in October, Token Terminal data shared by
Web3 Academy on October 26, via X shows. LooksRare’s Monthly
Volume Tanking, Falls To $2.1 Million In October The unprecedented
drop in activity couldn’t be pinned on any particular
LooksRare-related event when writing on October 26. This
contraction is despite the broader cryptocurrency market
recovering, rising as seen by the welcomed expansion of leading
assets, including Bitcoin (BTC) and Ethereum (ETH). Related
Reading: Bitcoin Price Surge: Matrixport Forecasts $125,000 Price
Target By December 2024 According to trackers, monthly volume has
been falling steadily since April 2023. Then, the average volume
exceeded $150 million, pointing to rising interest, especially from
traders. At that time, it should be noted that most crypto assets
were also growing. Specifically, Bitcoin broke higher, touching
$30,000, triggering demand and reviving hopes that the market was
looking up again following the collapse in 2022. By June through
September, the average monthly volume in LooksRare had more than
halved before plunging to less than $3 million in October 2023. The
spike in monthly trading activity in April coincided with the
release of LooksRare v2, which saw the platform’s developers reduce
trading fees by 75% from 2% to 0.5%. The updated version is also
more gas efficient, allowing traders to save up to 30% on gas
compared to the previous edition. Moreover, with LooksRare allowing
traders to place bulk orders when buying or selling, monthly volume
rapidly rose in April. NFT Bull Run Postponed, Will LOOKS Break
Resistance Line? With activity rapidly contracting, LOOKS, the
native token of LooksRare, has also been flat-lining, looking at
price action. The token trades around the $0.070 level at spot
rates, retesting August highs. However, an inverted hammer suggests
that the uptrend momentum could wane, and bears might reverse
gains. Related Reading: Bitcoin’s Upcoming Leap? Analyst Predicts A
Potential $45,500 Rise By November Despite concerns, LOOKS is up
60% from H2 2023 lows and may still rally in the months ahead.
Looking at the candlestick arrangement in the daily chart, a close
above $0.070 with expanding volumes could set the ball rolling for
buyers who expect the token to retest 2022 lows at around $0.12.
Overall, NFT and digital collectible trading activity remains
relatively lower, even with bullish traders expecting prices to
turn around and rally in 2024. Recently, there was a brief increase
in the floor prices of leading NFT collections like Bored Ape Yacht
Club (BAYC), Azuki, and CryptoPunk. However, with trading volume
and the number of new owners still at record lows, researchers put
off the chance of an NFT bull run starting in Q4 2023. Feature
image from Canva, chart from TradingView
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