LooksRare’s Monthly Volume Plummets to $2.1 Million in October
The trading volume of LooksRare, a decentralized non-fungible token (NFT) and digital collectible marketplace, has experienced a significant decline. In September 2023, the monthly volume reached $71.9 million, but it plummeted to just $2.1 million in October, according to Token Terminal data shared by Web3 Academy on October 26.
No Clear Reason for the Drop
Interestingly, this decline cannot be attributed to any specific event related to LooksRare. It is noteworthy that this contraction occurred despite the overall recovery of the cryptocurrency market, with leading assets like Bitcoin (BTC) and Ethereum (ETH) experiencing positive growth.
Steady Decline Since April 2023
The decrease in monthly volume has been observed since April 2023 when the average volume exceeded $150 million. This indicated a growing interest in LooksRare among traders. However, as time passed, the monthly volume steadily declined and dropped to less than $3 million in October 2023.
Increased Activity in April
In April, there was a spike in trading activity coinciding with the release of LooksRare v2. The updated version of the platform featured reduced trading fees and improved gas efficiency, leading to a rapid increase in monthly volume during that period.
LOOKS Token Performance
The native token of LooksRare, LOOKS, has also been affected by the decline in activity. Currently trading around $0.070, the token’s price action suggests a potential reversal of gains. Despite this, LOOKS has seen a 60% increase from its lows in the second half of 2023 and may still experience a rally in the coming months.
NFT Bull Run Delayed
Although some popular NFT projects like Bored Ape Yacht Club (BAYC), Azuki, and CryptoPunk have gained attention, the trading volume and number of new owners in the NFT space remain low. As a result, researchers are skeptical about the possibility of an NFT bull run starting in Q4 2023.
Hot Take: LooksRare Struggles Amidst Declining NFT Market
The monthly trading volume of LooksRare has experienced a significant decline, dropping to just $2.1 million in October 2023. This contraction comes despite the recovery of the broader cryptocurrency market. The steady decline in monthly volume since April indicates waning interest among traders. The release of LooksRare v2 led to increased activity temporarily, but it was not sustained. Additionally, the performance of LOOKS token suggests a potential reversal of gains. With the overall NFT market still struggling, the chances of an NFT bull run starting in Q4 2023 seem unlikely.
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