August 8, 2023

NFT Thefts in July Experience 24% Decline Compared To June

NFT Theft

NFT Theft

Theft of NFTs has decreased for the fifth consecutive month as NFT market sentiment continues to remain weak.

Recent research shows that stolen NFTs in July were valued at $1.73 million. This is a 24% decrease from the previous month, which had $2.27 million in thefts.

Moreover, it is down almost 90% from the worst month of the year, February, which saw $16.2 million in NFT thefts. Stolen NFTs are sold quickly, as half of the stolen NFTs were sold on various marketplaces within 165 minutes, according to PeckShield.

According to the report, Blur is the most popular marketplace among NFT thieves, accounting for 67.3% of all resales. Opensea comes in second place with approximately 20% of the stolen NFTs being sold on its platform. Shockingly, over $40 million worth of NFTs have already been stolen in the year 2023.

The NFT market had a rough month in July as the trading volume for NFTs decreased by 29% to $632 million in July, while the total number of NFT sales fell by 23% to 3.7 million. This decline follows a previous report by DappRadar indicating a 38% drop in NFT trading volume during the second quarter of this year, according to BeInCrypto.

In June, the company experienced a 44% decrease in the number of unique daily active wallets in the NFT sector. In May, DappRadar observed a 44% decline in NFT trading volume. This month, the market has continued to shrink, with DappRadar reporting a 19% drop in the number of daily active wallets to 70,338, accounting for only 4% of the industry’s overall activity.

Blockchain analyst Sara Gherghelas attributed this drop to many reasons, including the overall market downturn since the second half of 2022, the price of Bitcoin and Ethereum, and the wild hype and speculation around NFTs that led to many scams and rug pulls.

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