According to Dune Analytics, since the beginning of the year, the cumulative trading volume of the decentralized NFT market has surpassed the $100 million mark as trading activity on Sudoswap has increased.
The cumulative transaction volume of Sudoswap has exceeded 100 million US dollars, but user activity has declined
Sudoswap’s daily transaction volume peaked at $2.3 million on August 17, 2022, but has been trending downward since then. As of Feb. 25, trading volume on the decentralized NFT marketplace totaled $187,153.
Source: Dune Analysis
Although cumulative transaction volume has risen to an all-time high, user activity on Sudoswap has been steadily declining. According to Dune Analytics, the number of new users of NFT exchange platforms has been steadily declining since August 2022. Likewise, the number of recurring users of the platform has since declined.
For example, in August 2022, Sudoswap averaged over 800 new users per day. However, since the beginning of February, the average daily number of new users on the platform has fluctuated between 50-20, and it even dropped to as low as 19 on February 23.
Source: Dune Analysis
As expected, the decrease in user activity on Sudoswap resulted in a corresponding decrease in the number of daily transactions and the number of NFTs traded. Since August 2022, the protocol has seen a 93% drop in the number of transactions completed per day.
Source: Dune Analysis
Likewise, users traded 96% fewer NFTs per day on Sudoswap during the same time period. Additionally, Sudoswap is currently seeing a steady decline in revenue. Less transaction volume means fewer users on the platform, resulting in lost Sudoswap fees.
In fact, over the past 30 days, Sudoswap has collected a total of $286,000 in fees, down 8%. Protocol revenue also fell 28% over the same period, according to Token Terminal.
Sudoswap announced the launch of the SUDO governance token on Jan. 30. The token rose to a high of $4.16 on February 19 before starting to fall.
Sudo/USDT 4H | Source: TradingView
At press time, SUDO is trading at $2.31, down 50% since then.
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