In response to the drop-off, once cash-rich players in the industry are cutting down on costs to stay afloat, with some having to lay off workers.
The most high profile of these was OpenSea which announced on July 14 that it was cutting 20% of its workforce with CEO, David Finzer, indicating in a message on Twitter that, ‘the reality is that we have entered an unprecedented combination of crypto winter and broad macroeconomic instability.’
Activity on OpenSea, the world’s top NFT marketplace, has dropped over the last 30 days, with sales volume declining by more than 20%. This keeps with a decline in various metrics over that period, and can be seen from data that was visualized on DappRadar:
Other than Opensea, Immutable, a NFT gaming company, also announced laying off more than 20 staff, adding to the number of organizations in crypto that were laying workers off amidst a sustained downturn. The list includes:
However, the downturn in NFT and the wider crypto industry is being seen as a chance for more innovation and ideas to build in another period of crypto winter.
“During this winter, we’ll see an explosion in innovation across the ecosystem.
When the global economy is uncertain, our mission to build a foundational layer for new, peer-to-peer economies feels more urgent and important than ever.”
– CEO, OpenSea
It is not all doom and gloom as NFT based solutions continue to raise funds from investors including the latest Series A round by Unstoppable Domains which sent its valuation over $1 billion.